AT&T and Verizon Pay $116 Million in Overcharging Settlements
US mobile operators AT&T and Verizon agreed to pay a combined $116 million to settle a lawsuit over claims they overcharged hundreds of government and education customers for mobile services. Under the terms of a deal, Verizon will pay $68 million and AT&T $48 million.
The funds will be transfered to nearly 300 state and local government organisations, while 40 percent is going to OntheGo Wireless, a tariff analysis company which initated the lawsuit under whistle-blowing laws. T-Mobile US and Sprint previously settled claims in the case for a combined $9.6 million.
Including additional settlements from a related action in Nevada, the four operators agreed to pay a total of $138.7 million to end the litigation. In 2012, OnTheGo Wireless alleged the operators had failed to meet contractual requirements to identify optimal tariffs for government customers since 2005. It claimed the customers had suffered financial damages of at least $500 million as a result of the operators not offering the lowest price available on a quarterly basis.