AT&T and Verizon have now settled a California lawsuit started back in 2012, with either carrier agreeing to pay out amounts totaling to as much as $116 million. That’s for settlement costs alone. Both carriers cite the long timeframe for the case and costly litigation for the decision. But each also continues to deny any allegations of wrong-doing, the Los Angeles Times writes.
For Verizon, the payout will equate to $68 million, overshadowing another payout of $8 million the company is set to settle for in a similar Nevada suit. That doesn’t include attorney’s fees either. For those, Verizon will pay out an additional $23.45 million.
AT&T, conversely, will pay out $48 million for the settlement as compared to its $3 million pay-out in Nevada. An additional $13 million will be tacked on for attorney’s fees.
The figures equate to approximately $99.45 million for Verizon and around $64 million for AT&T.
The proceeds from that will be extended to approximately 300 state and local government entities. Those include California State University and the University of California systems as well as LA and Orange Counties. But individual cities, schools, irrigation, and hospital districts will receive funding from the settlement as well.
What’s at the root of this lawsuit between California and carrier networks?
The whistleblower, in this case, was OnTheGo Wireless, a small MVNO founded by Jeffrey Smith. The organization will receive approximately $47.7 million of the $163.45 million pay-out.
For clarity, OnTheGo Wireless was a carrier that worked specifically in wireless plan optimization, and both corporate and government customers. It also worked directly with both Verizon and AT&T.
The case here was allowed to be brought by OnTheGo Wireless, according to Verizon spokesman Rich Young, after an investigation in both states by the California attorney general’s office investigation. Specifically because of a provision in the law that allows independent lawsuits to be brought on the state’s behalf.
Both that investigation and the claims against the carriers alleged that they failed to optimize plans for government entities based on actual usage.
That investigation led to a decision not to sue the companies. But Mr. Smith was able to discover and report the overcharging by each carrier, and then to provide expertise in rate plan optimization, showing the overcharging. Other industry entities later grouped together to join the suit. That ultimately led to Judge Judy Holzer Hersher’s ruling in the matter.
AT&T and Verizon aren’t the only ones to pay out in such a case
Quite aside from AT&T and Verizon, there are at least two other carriers forced to payout in relation to the case. Those are Sprint and T-Mobile. The now-combined carrier is paying a total of $9.6 million to ensure the California carrier lawsuit is settled.
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Source: ndroidheadlines.com