The power button on a woman’s iPhone 4 failed, and she’s not able to turn the phone on or off. That pretty much renders it useless, so she ditched AT&T and got a new phone. But she never forgot that shiny, shiny iPhone that broke down shortly after its initial one-year warranty was up. She filed a class action on behalf of herself and other powerless iPhone users. What raised eyebrows is that she sued under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, accusing Apple and AT&T of conspiring together to sell expensive two-year contracts on phones that break after one year. [More]
The Supreme Court has rejected Microsoft and Best Buy’s appeal in the MSN racketeering lawsuit, says the Wall Street Journal, thus “ending a bid by the two companies to stop a class-action lawsuit over a joint marketing campaign for MSN Internet Access service.”
We thought the scam mentioned in the racketeering lawsuit sounded familiar—it was. A Best Buy employee emailed us on April 4, 2007 to confess to the type of behavior mentioned in the lawsuit.
When you think RICO you think Al Capone, or maybe Tony Soprano if you watch too much HBO. You don’t really think of Best Buy and Microsoft, do you? James Odom does. He’s the original plaintiff in a now 4 year old class action lawsuit that just won’t go away for Best Buy and Microsoft, one that now includes racketeering charges.