Final Approval of Nationwide AT&T DSL Speed Settlement

On December 28, 2011, Judge John P. O’Donnell of the Cuyahoga County Court of Common Pleas in Cleveland, Ohio granted final approval to a nationwide class action settlement that will resolve lawsuits filed in Ohio and Missouri stating allegations against AT&T Internet Services (formerly SBC Internet Services).

Plaintiffs, on behalf of a class of AT&T and/or former SBC DSL customers, allege that AT&T and/or SBC breached its contracts with and defrauded some of its customers by capping the DSL speed that some of its customers could obtain below the maximum promised speed for the plan the customer purchased.  Plaintiffs also allege that AT&T and/or SBC breached its contract with and defrauded some of its customers by delivering speeds lower than the minimum promised speed under the customer’s plan.  AT&T strongly denies the allegations, asserting that where speed limitations were used they were proper and enable a more stable Internet service, and that other reductions in DSL speeds often resulted from factors (such as inside wiring or equipment issues) outside of AT&T’s control.  AT&T has agreed to settle to avoid the cost and burden of further litigation.

Recognizing the uncertainties and burdens of litigation, the parties agreed to compromise and reached a settlement of all claims.

The settlement provides claimants with cash benefits between $2 and $8 per month (with the number of months tied to individual situations) and further provides for “remediation” obligations and “non-capping” injunctive relief for a period of three years.  A copy of the settlement, which provides details regarding the terms, can be found at https://dslspeedsettlement.com/.

All documents filed in the litigation can be found in the courts’ files in Ohio and Missouri, and all such documents speak for themselves.