iLounge

By Charles Starrett

Senior Editor, iLounge
Published: Monday, January 31, 2011
News Category: iPad, iPhone

A new class action lawsuit has been filed against AT&T, claiming that the company over bills for data usage, Courthouse News reports. According to the suit, which was filed in federal court by Patrick Hendricks, “AT&T’s bills systematically overstate the amount of data used on each data transaction involving an iPhone or iPad account,” going on to describe it as being “like a rigged gas tank that charges pump that charges for a full gallon when it pumps only nine-tenths of a gallon into your car’s tank.” Hendricks claims that the over billing and “phantom” data usage were discovered and confirmed by an “independent consulting firm retained by plaintiff’s counsel, which conducted a two-month study of AT&T’s billion practices for data usage.”  The firm “found that AT&T systematically overstate web server traffic by 7 percent to 14 percent, and in some instances by over 300 percent.” While the complaint admits that the overcharges “have a modest effect on an individual customer’s bill, they have a huge effect on AT&T’s bottom line,” citing fourth quarter 2010 wireless data revenue of $4.9 billion. Hendricks is seeking restitution and class damages for money received, breach of contract, unjust enrichment, unfair and fraudulent business practices, unfair competition, and violations of the federal Communications Act.