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AT&T Mobility Class Action Settlement Of Internet Tax Class Action Lawsuit

If you paid taxes, fees or surcharges (“Internet Taxes”) to AT&T Mobility LLC (“AT&T Mobility”) on internet access through certain services including iPhone data pians, Blackberry data plans, other smart phone data plans, laptop connect cards and pay-peruse data services on bills issued from November 1, 2005 up to and including September 7, 2010, you might be eligible to receive benefits from a class action settlement.

A class action settlement has been reached in a class action lawsuit against AT&T Mobility LLC (“AT&T Mobility” or “AT&T” or “ATT” or “Defendant”) in the United States District Court for the Northern District of Illinois, Eastern Division (captioned In Re: AT&T Mobility Wireless Data Services Sales Tax Litigation, Civil Action Case No. 1:10-cv-02278), alleging, among other things, that AT&T Mobility charges customers for taxes, fees and surcharges on internet access through certain services including iPhone data plans, Blackberry data plans, other smart phone data plans, laptop connect cards and pay-per-use data services in violation of the Internet Tax Freedom Act, 47 U.S.C. § 151 (1998) (as amended) and other state laws, according to the AT&T Mobility internet tax class action lawsuit settlement notice.

The AT&T Mobility internet tax settlement class reportedly includes the following persons, unless otherwise excluded:

All persons or entities who are or were customers of AT&T Mobility and who were charged Internet Taxes on bills issued from November 1, 2005 through September 7, 2010. Excluded from the class are (i) AT&T Mobility, any entity in which AT&T Mobility has a controlling interest or which has a controlling interest in AT&T Mobility, and AT&T Mobility’s legal representatives, predecessors, successors and assigns; (ii) governmental entities; (iii) AT&T Mobility’s officers, directors, agents and representatives; and (iv) the Court presiding over any motion to approve the Settlement Agreement.

The AT&T Mobility internet tax class action lawsuit settlement reportedly will provide the following benefits to settlement class members:

Subject to a future law, regulation or ruling requiring, authorizing or permitting collection of the Internet Taxes in your jurisdiction, AT&T Mobility will cease charging the Internet Taxes on certain services as set forth in the Settlement Agreement. AT&T Mobility, on behalf of the Settlement Class, but at AT&T Mobility’s expense, shall prepare and process refund claims for filing with the various taxing jurisdictions seeking a refund of the Internet Taxes collected by AT&T Mobility from the Settlement Class and paid by AT&T Mobility to the taxing jurisdictions. AT&T Mobility and/or the Class Representatives will file the refund claims. As part of the Settlement, AT&T Mobility has assigned its rights, title and interest in such refunds to the Settlement Class. If a taxing jurisdiction issues future tax credits to AT&T Mobility in lieu of a refund of monies sought on a refund claim for Internet Taxes, AT&T Mobility shall remit monies to the escrow accounts established pursuant to the Settlement. If the use of the future tax credit will be spread over a three (3) year period or less, AT&T Mobility shall remit monies to the escrow accounts equal to the total future tax credits. If the use of the future tax credit will be spread over a period longer than three (3) years, AT&T Mobility shall remit monies to the escrow accounts equal to the net present value of such future tax credits for the fourth and succeeding years using a 5% discount rate to compute the net present value. The amount of the first three (3) years shall be paid with no discount. Finally, AT&T Mobility has agreed to pay to the Settlement Class any vendor’s compensation related to the Internet Taxes AT&T Mobility was allowed by certain taxing jurisdictions in the form of a credit against taxes owing to the taxing jurisdictions, which is generally considered to be compensation for the vendor’s collecting and remitting taxes to the taxing jurisdiction. Vendor’ s compensation shall not include amounts to which AT&T would have been entitled independent of the collection of Internet Taxes based on limitations on the amount of credit allowed pursuant to applicable law. All refunds or payments by AT&T Mobility related to credits and payments of the vendor’s compensation will fund separate escrow accounts for the benefit of the Settlement Class.

The Court is scheduled to hold a class action settlement hearing to consider approval of the proposed AT&T Mobility internet tax settlement on March 10, 2011, beginning at 9:30 a.m., at the United States District Court for the Northern District of Illinois, Eastern Division, Everett McKinley Dirksen United States Courthouse, 219 South Dearborn Street, Chicago, Illinois 60604.

For more information on the AT&T Mobility internet tax class action lawsuit settlement, visit the AT&T Mobility class action settlement website:

www.attmsettlement.com

If You Have Thoughts On The AT&T Mobility Internet Tax Class Action Lawsuit Settlement, Share Your Settlement Comments Below.

{ 3 comments… add one }
  • A CAVALIER November 25, 2010, 3:26 pm

    I HAVE EVEYTHING WITH AT&T CELL FULL PACKAGE TV PHONE COMPUTOR VOICE C ID YOU NAME IT I HAVE IT IKNOW I GIVE THEM OVER 400.00 A MONTH AND THE TX S MOUNT UP I THINK THIS IS A GOOD THING

  • Janice Jones January 11, 2011, 1:39 pm

    at&t bills was so high my bills was 300 hundred a month Iwant my money back time is to hard donot have money to give away please give what belong to me MissJanice

  • Joyce Wright Anighoro October 15, 2014, 4:13 am

    I was very upset with all the extra charges. I questioned A T & T billing I was told that these charger was government fee required on customers account .

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