<![CDATA[Consumerist: Settlements]]> http://cache.gawker.com/assets/base/img/thumbs140x140/consumerist.com.png <![CDATA[Consumerist: Settlements]]> http://consumerist.com/tag/settlements http://consumerist.com/tag/settlements <![CDATA[ Ringtone Scam Class Action Settlement Announced ]]> We've known how "free" ringtones and other "free" cellphone content comeons are often lures to get you signed up on a hidden monthly subscription, and now there's a class action lawsuit settlement to punish MobileMessenger, one of their purveyors. The settlement covers customers from every cellphone provider who bought content from January 1, 2005 to August 13, 2008. If you paid for your kids cellphone plan during that time, chances are they ordered some. You can check your bills for any the "short codes" (listed inside) or call 1-800-416-6129. The deadline for filing a claim is January 30, 2009. More information about Gray v. Mobile Messenger at cellphonedownloads.class-action-admin.com.

[via TopClassActions]

Short Codes to look for on your bills:

1103
20795
21000
22999
24000
25516
25692
26000
27000
28394
29000
29940
31000
33555
33999
34135
35322
36000
37215
38297
39999
40544
40684
41933
44674
44999
45555
46357
46621
47777
51000
52975
56846
57396
58560
59999
61240
63556
63937
64651
65589
66047
67777
71888
72449
72545
75556
75557
76036
76284
77444
78448
79171
81636
84287
85960
86455
87313
87572
88015
88789
88922
89147
89623
91097
95521
95787
98651

(Photo: blueoneiam)

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Consumerist-5059816 Mon, 06 Oct 2008 22:28:56 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5059816&view=rss&microfeed=true
<![CDATA[ Cellphone Extras Aggregator Mobile Messenger Agrees To Pay Out Triple Damages ]]> If you or your teen racked up surprise monthly fees from Mobile Messenger after texting a random code to a strange number because the tv told you to, then you may be eligible for a refund, if not triple damages.

Mobile Messenger was a classic middleman, managing the billing for third-parties who sold ringtones, games, alerts, jokes, horoscopes, and applications. Since they didn't directly provide services, your itemized bill might display a short code instead of "Mobile Messenger." Carefully check this list of codes (pdf) for anything familiar that might have cropped up on your bill.

The scammy subscription pusher's settlement covers anyone who received an unauthorized charge between January 1, 2005 and August 13, 2008. Mobile Messenger had previously agreed to settle a class action covering only AT&T subscribers; if you're eligible for both settlements, you can only file one claim form. Sorry!

Class members who received a one-time charge are eligible to dip into a settlement fund of up to $12 million. Anyone who was billed for subscription services without authorization can receive a refund for up to three times the amount of their monthly fee. The settlement is great news for the mother whose son charged $600 in a single month. She can look forward to an $1,800 payout.

The claim forms are available at the class action's website.

Gray v. Mobile Messenger Class Action Settlement [via Top Class Actions]
(Photo: KB35)

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Consumerist-5059211 Sun, 05 Oct 2008 15:00:46 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5059211&view=rss&microfeed=true
<![CDATA[ Timberland Offering Up To $150 To Recipients Of Its Text Message Spam ]]> Did you receive text message spam from Timberland between 2003 and last month? If so, you may be eligible for $150 in we're-not-admitting-guilt apology money from them, according to Info World:
Under the terms of a preliminary settlement agreement, [Timberland and e-commerce company GSI] will pay $7 million into a cash fund to reimburse those who received the messages, according to KamberEdelson LLC, one of the law firms that helped bring the suit.

To sign up for your slice of the $7 million pie—pending court approval—visit www.timberlandtextsettlement.com and register as a claimant. You have to register by Feburary 2nd, 2009.

"Timberland pays out to settle text spam lawsuit" [InfoWorld via IntoMobile]

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Consumerist-5054380 Wed, 24 Sep 2008 16:51:26 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5054380&view=rss&microfeed=true
<![CDATA[ Vienna "All Beef" Hot Dogs Are Made With Sheep, Pigs ]]> Sorry Chicagoans, your beloved Vienna "100% All Beef" hot dogs are actually encased in sheep and pigs, according to a recently settled class action suit. Under the settlement, all class members—anyone in the U.S. who bought a Vienna hot dog at a hot dog stand in the past five years—are entitled to $3 per consumed hog dog. To submit a claim, visit caclawyers.com/viennasettlement.html and follow the procedures listed there.

In Re Vienna Beef Ltd. Litigation: CLASS ACTION SETTLEMENT INFORMATION [The Consumer Advocacy Center]
Just in Time for Lunch: Hot Dogs & the Law, Part I [Wall Street Journal Law Blog]
(Photo: Meghann Marco)

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Consumerist-5052810 Sun, 21 Sep 2008 13:00:49 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5052810&view=rss&microfeed=true
<![CDATA[ Just a reminder: you can get free credit ... ]]> Just a reminder: you can get free credit reporting services for at least six months by participating in a class action settlement against TransUnion. Carey posted details about it back in June; the deadline to participate is September 24th. (Thanks to Michael!)

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Consumerist-5048645 Thu, 11 Sep 2008 17:13:19 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5048645&view=rss&microfeed=true
<![CDATA[ Citibank Must Pay Back The $14 Million It Stole From Customers Over A Decade ]]> Between 1992 and 2003, Citibank operated an "automatic sweeping" program that would without notice remove positive balances from customers' credit card accounts—mainly those of the poor and the recently deceased—and pocket the money. Now it's paying back $14 million dollars to the affected customers, plus another $3.5 million in penalties to California, thanks to that state's Attorney General.

From the Associated Press:

Citigroup's "account sweeping program" automatically removed positive balances from customers' credit card accounts, Attorney General Edmund G. Brown Jr. said. For instance, if a customer double-paid a bill by mistake or refunded a purchase for credit, that positive balance was then taken from the customer without notification, Brown said.

The news stories that announced the settlement last week don't explain why the sweeping program was set up in the first place, or why it ran for so long. They do point out, however, that a whistleblower brought the program to the attention of an internal audit team in 2001, but that person was ignored and later fired.

One unnamed Citibank executive explains Citibank's position pretty succintly in the AG's press release:

In the words of a Citibank executive, “Stealing from our customers is a business decision, not a legal decision.” The same executive later said that the sweep program could not be stopped because it would reduce the executive bonus pool.

Citibank says it admits to no wrongdoing, although we're not sure how you can characterize pocketing overpayments and credits for yourself as crime-free.

According to the settlement (PDF), Citibank must identify all affected accounts and mail a notice via first class mail to the account holder's last known address, or to the person in charge of the customer's estate. You'll have to respond within 60 days of this notice, and then will be reimbursed the skimmed fees plus 10% interest. The bank has until June 1st, 2009 to refund the money.

"Citi pays $18M for questioned credit card practice" [Associated Press]
"Citibank Stole From 53,000 Customers" (Thanks to Claire!)
(Photo: Getty)

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Consumerist-5045056 Wed, 03 Sep 2008 20:48:11 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5045056&view=rss&microfeed=true
<![CDATA[ Sorry About The Rocks In Your Raisin Bread. Here's $5. ]]> We've never really stopped to wonder what sort of compensation we would require if we found small rocks in our raisin bread, but we're pretty sure that it's more than $5. Maybe we're being unrealistic, because when Michael Snyder found rocks in the raisin bread he bought from a bakery in Somerville, Massachusetts, he asked for 5 loaves of bread in compensation and settled for $5 instead.

Ron Siegel, co-owner, told the Journal they have traced the rocks back to a shipment of raisins they received from Hillcrest Foods, a food distributor. When Pigs Fly has since sent the shipment of raisin back to the distributor.

The raisins were traced back to a Chilean company where an older method of drying grapes is used. This old method dries the grapes in between the rows of vineyard. While this method works well, it does allow for more contamination by small rocks and other foreign materials.

When Pigs Fly Inc. did offer compensation for the loaves of “rocky” bread. Siegel said Snyder originally wanted five loaves of bread shipped to his house in North Reading, but a compromise was reached, and Snyder was sent a $5 check.

Snyder is not bitter about the situation. “I have nothing bad to say,” said Snyder. “I am sure this is an isolated event.”

Oh well, we're glad they worked it out. That must be some tasty raisin bread.

Rocks in raisin bread traced to Chilean company
[Wicked Local](Thanks, R Interger !)

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Consumerist-5036528 Wed, 13 Aug 2008 11:50:02 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5036528&view=rss&microfeed=true
<![CDATA[ Suing? Settle. ]]> Would-be coffee spillers take note: If you're ever suing and get offered a settlement, take the deal. A new study shows that plaintiffs who turn down settlements and go to trial end up getting less than if they had settled.

Study Finds Settling Is Better Than Going to Trial [NYT] (Photo: Brymo)

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Consumerist-5034794 Fri, 08 Aug 2008 12:35:37 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5034794&view=rss&microfeed=true
<![CDATA[ Settlement In BA-VA Price-Fixing Class Action ]]> You're entitled to a small refund if you bought tickets for a long haul flight on British Airways or Virgin Atlantic between August 11, 2004 and March 23, 2006. The amount is $7-$34 per flight taken. This is the settlement in a class action lawsuit contending the two airlines colluded to fix the price of fuel surcharges. More info at airpassengerrefund.com. [via RickSeaney]

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Consumerist-5032363 Wed, 06 Aug 2008 12:44:25 EDT Ben Popken http://consumerist.com/index.php?op=postcommentfeed&postId=5032363&view=rss&microfeed=true
<![CDATA[ Judge Rules That Early Termination Fees Are ILLEGAL In California ]]> A California Superior Court judge has ruled that cellphone early termination fees are ILLEGAL and that Sprint must pay $18.2 M as part of a class action lawsuit. Of course, the decision could be appealed, but in the meantime.... (drum roll, please) the judge ordered Sprint to stop trying to collect the fees from customers in California who were refusing to pay them!

According to the lawsuit, this ruling will affect about 2 million Californians, and may affect other, similar lawsuits that are pending in other states, says the San Jose Mercury News.

"We are disappointed," Sprint Nextel spokesman Matthew Sullivan told the paper.

Consumer's Union (you know them as the publisher of Consumer Reports) were pleased with the ruling.

“This is a huge victory for consumers,” Chris Murray, senior legal counsel for Consumers Union said in a press release, but expressed concern that the FCC might step in and start regulating the fees.

“Not only did this case generate an extensive record showing that these fees are not really used to subsidize wireless phones, but are instead simply used to lock consumers into contracts. Contract law says that's illegal. Let's hope the FCC doesn't turn around and give the wireless industry a get out of court free card.”

We're looking forward to seeing how this affects our readers in California, so if you're battling Sprint over an ETF and you live in CA, send your story to tips@consumerist.com. Let us know how they're reacting to this ruling!


Sprint loses early termination fee case in California
[Consumers Union]
Sprint early termination fees are illegal, judge rules [Mercury News] (Thanks, Gilbert!)
(Photo: smcgee )

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Consumerist-5031770 Thu, 31 Jul 2008 19:49:09 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5031770&view=rss&microfeed=true
<![CDATA[ Sprint Loses Early Termination Fee Case In California ]]> A California judge has issued a tentative ruling against Sprint regarding early termination fees. Although Sprint has two weeks to respond before the judge issues a final ruling, if the ruling stands then Sprint will have to pay $73 million in refunds to former customers. That Verizon settlement for $21 million earlier this month must be looking pretty sweet to Sprint's investors right about now.

"Sprint Loses Early Termination Fee Case, May Pay $73 Million" [CNN Money]
(Photo: Maulleigh)

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Consumerist-5030449 Tue, 29 Jul 2008 11:33:08 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5030449&view=rss&microfeed=true
<![CDATA[ If you worked at Fry's Electronics between ... ]]> If you worked at Fry's Electronics between March '02 and July '07, you can participate in a newly announced class action settlement. You should be contacted directly, but you can also download the settlement and claim form from here. [FrysForum] (Thank to Luis!)

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Consumerist-5025180 Mon, 14 Jul 2008 22:24:40 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5025180&view=rss&microfeed=true
<![CDATA[ AT&T Agrees To Refund Unauthorized Third-Party Charges On Cellphone Bills ]]> AT&T Mobility has agreed to offer refunds to customers who were charged for third-party services like ringtones, although if you were frequently a victim of this you'll quickly exhaust your refund quota: "Customers will able to claim refunds for spurious charges that appeared on up to three of their monthly bills between Jan. 1, 2004, and May 30, 2008." AT&T should be sending out a notification to its customers "soon," but you can already download a refund request.

Will this bring an end to cramming on the AT&T network? Maybe it depends on how many customers demand refunds, although it seems that AT&T is taking steps to rein in the worst of the third-party companies:

[AT&T] now requires customers who sign up for third-party services with recurring fees to confirm by replying to a text message. It also requires the content providers to send monthly reminders with instructions on how to unsubscribe from such services.

"AT&T has taken aggressive action to put industry-leading safeguards in place to protect our customers from unauthorized changes from third parties. We believe this settlement is consistent with that approach," Richter said.

Richter had no estimate for how much the settlement will cost AT&T. Given that the company already let customers contest spurious charges, he said the number who will get refunds through the settlement will be small. The company will pay the plaintiffs' lawyers $4.3 million.

Notifications will soon go out to 70 million current AT&T Mobility customers.

Here's more info on cramming to help you protect your cellphone bill from exploding.

"AT&T settles suit over 3rd-party cell phone fees" [Associated Press]
ThirdPartyContentRefund.com

RELATED
How To Fight The Phone Cram Scam

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Consumerist-5012576 Tue, 03 Jun 2008 08:52:23 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5012576&view=rss&microfeed=true
<![CDATA[ Massive TransUnion Settlement To Reveal Credit Scores ]]> Did you have a credit card between Wednesday and 1987? Great! You're part of a massive class action settlement with TransUnion. The credit reporting agency has agreed to fork out services worth over $100 to every cardholder as a way of saying "sorry for grossly violating federal privacy laws by selling your private data to businesses!"

Violated cardholders can select from two options:

(1) Basic relief. Free credit monitoring for six months, which gives you daily access to your credit report and credit score and 24-hour credit-monitoring service. This normally costs $59.75. Those who elect this option may get a cash payment if there’s money left from the $75 million settlement fund.

(2) Enhanced relief. An alternative enhanced set of services” in exchange for a full release of claims. This options includes nine months credit monitoring, a suite of insurance scores and TransUnion’s mortgage simulator service. This option normally would cost $115.50. You won’t be entitled to any cash payment under this option.

Option 1 could generate cash, but option 2 might provide your actual credit score, depending on which news outlet you believe. Option 2 has the potential to be worth significantly more to the average consumer.

Even better: "Under the settlement, a credit card number would not be required to sign up for either service. After the free service ends, TransUnion could not charge for an extension unless it was requested by the consumer."

The settlement still needs to be approved, but if it is, it'll be a huge win for consumers.

Ken McEldowney, executive director of Consumer Action, a national advocacy group based in San Francisco, called the settlement mind-boggling.

"It's everything we tell consumers that they need to find out if they have problems with their credit," he said. "They are getting information on how to improve it and information about whether they are creditworthy. This is astonishing."

You can start filing claims on June 16 at the settlement website, or by calling (866) 416-3470.

Consumers will soon know the (credit) score [L.A. Times]
TransUnion Free Credit Score Settlement [Blueprint For Financial Prosperity]
(Photo: RobotSkirts)

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Consumerist-5012004 Sun, 01 Jun 2008 11:01:06 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=5012004&view=rss&microfeed=true
<![CDATA[ NYC 'Bodies' Exhibit Must Refund Tickets For Using Undocumented Corpses ]]>

If you've seen the "Bodies" exhibit at the South Street Seaport in New York City, you're entitled to a refund (click here for info) according to a new agreement between New York's Attorney General's office and Premier Exhibitions, Inc. When "Bodies" first opened here over two years ago, some opponents questioned whether the Chinese cadavers were legally obtained—or whether they were Chinese political prisoners who hadn't consented to being plastinated, flayed, and displayed by a private for-profit company. At the time, Premier Exhibitions' president said all the bodies were documented: "Although he said he was not allowed to keep copies of documents, officials at Dalian University in northern China showed him papers attesting to the origin of the remains," wrote the New York Times in 2005. Then ABC's news show "20/20" aired an investigative report this past February that showed otherwise.

From ABC News:

Premier Exhibitions says that the "unclaimed" bodies on display were legally obtained from Dalian Medical University.

ABC News' "20/20" reported earlier this year that the bodies did not come from the university but instead from a private, for-profit lab about 30 miles away. "20/20" interviewed someone who said he was a former participant in the black market, in which, he said, bodies were sold to that lab for $200 to $300 each. Dalian Medical University told ABC News that it severed its ties to the plastination lab several years ago.

Premier's former CEO Arnie Geller, who is still on the company's Board of Directors disputed the allegations on "20/20." He said that his suppliers assured him that "these are all legitimate, unclaimed bodies that have gone through Dalian Medical University."

"20/20" also reported that the inventor of plastination, Dr. Gunther von Hagens (who has touring body shows that are not related to Premier Exhibitions or their exhibits), claimed he stopped using Chinese-sourced bodies entirely because of his suspicions that they were unethically obtained:

Von Hagens says he had to cremate several bodies he received in China after detecting injuries that led him to suspect they had been executed prisoners. He says those bodies were given to him by a medical school in China to plastinate for teaching models. He said he only used Chinese bodies, all of which he received from the Chinese university, for teaching models, but has never put Chinese bodies on public display.

"There is now no way for me any more to work with specimens in China," said von Hagens, who says his company in China now only deals with animal specimens.

Oddly, there are no customs restrictions in the U.S. with plastinated corpses at the present, writes ABC News:

U.S. Customs has said that since the plastination process changes the nature of the human remains, plastinated body parts can be imported as plastic objects, not as human bodies.

This is why 21 members of Congress have sponsored a bill that would prohibit the importation of plastinated cadavers entirely.

WNYC reports that as part of the agreement, Premier Exhibitions will have to post a warning now that some of the bodies may be those of executed Chinese prisoners, which we imagine would put a damper on any future visits.

We can't find any details yet on how to request the refund, so if someone finds out, please send us a tip. Thanks to Brian and Melt for the refund contact info!

"'Bodies' exhibit avoids a stiff penalty" [Daily News] (Thanks to Alex!)

RELATED
"Cadaver Exhibition Raises Questions Beyond Taste" [New York Times]
"Exclusive: Secret Trade in Chinese Bodies" [ABC News]
"Lawmakers Call for Crackdown on Bodies Exhibits" [ABC News]
H.R. 5677 [GovTrack.us]
"State Reaches Settlement with Bodies Exhibit" [WNYC.org]
(Photo: jemsweb)

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Consumerist-5011998 Fri, 30 May 2008 21:02:52 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5011998&view=rss&microfeed=true
<![CDATA[ Today Is The Last Day To File A Claim In The Credit Card Foreign Transaction Fee Class Action ]]> If you were planning on filing a claim in the credit card foreign transaction fee class action, today is the last day to do it.

Don't wait! Click here. The deadline is 11:59 p.m.tonight, Eastern Time. Your form must be submitted electronically, post marked, or faxed by then.

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Consumerist-5011937 Fri, 30 May 2008 15:56:51 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=5011937&view=rss&microfeed=true
<![CDATA[ Pet Food Companies Agree To $24 Million Settlement Over Killer Pet Food ]]>

After a two-week delay to make sure the language of the settlement met U.S. and Canadian law, about 30 pet food makers have agreed to pay out $24 million to customers whose pets were killed or injured in the tainted food fiasco a year ago. Victims will be reimbursed for expenses, including vet and burial/cremation bills. Additionally, "pet owners can request reimbursement for the cost or fair-market value—whichever is higher—of a deceased pet or one purchased in replacement. Owners who don't have documentation of expenses can get as much as $900 each. All claims are subject to review."

If approved, this will pretty much wrap up the saga of the melamine-tainted pet food, and teach pet food companies a hard lesson about enforcing stricter standards on their Chinese suppliers. According to the Wall Street Journal,

Among the companies settling the suit are Menu Foods Income Fund; Procter & Gamble Co., which makes Iams pet food; Colgate-Palmolive Co., maker of Hill's; Nestle SA, maker of Purina; and Mars Inc., maker of Pedigree. Retailers including Wal-Mart Stores Inc., Target Corp., Petco Animal Supplies Inc. and PetSmart Inc. were also part of the suit.

The settlement has to be approved by a judge, and the court date is set for Friday, May 30th.

"Legal settlement reached in tainted pet food case" [Reuters UK]
(Photo: faster panda kill kill)

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Consumerist-5011108 Tue, 27 May 2008 12:43:55 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=5011108&view=rss&microfeed=true
<![CDATA[ A California court has upheld the scrawny ... ]]> con_tinynetflixonred.jpgA California court has upheld the scrawny Netflix "throttling" settlement from 2006. That was when Netflix settled a class-action lawsuit that alleged they intentionally slowed down the rental rates of high-renting customers. The settlement only really benefited lawyers and Netflix, but it stands. [Reuters]

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Consumerist-382913 Tue, 22 Apr 2008 23:00:52 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=382913&view=rss&microfeed=true
<![CDATA[ Leukemia Survivor Who Had Identity Stolen By Lab Tech Tells His Story ]]> con_ericdrew.jpgWe wrote about Eric Drew a few weeks ago—his personal information was stolen by a shady lab technician while he was undergoing treatment in 2004. Even after the lab tech was convicted, Drew still had to fight with the credit reporting companies to prove he existed and to clear up his credit record, so he filed lawsuits against TransUnion, Bank of America, Chase, Citibank, Equifax and Experian. He settled with TransUnion earlier this year, and as part of the settlement they will now accept doctors' notes for the hospitalized and the elderly, as well as offer free credit freezes to victims of ID theft.
 
So why are we rehashing this? Discover magazine just published a detailed account of Drew's story, from his battle with leukemia and subsequent remission to the lengthy battle he waged against the credit industry to clear up his credit history.

Two days before the transplant, the hospital called Drew to tell him that his half brother, Michael, had mononucleosis and that it would be months before he could be up to the surgery required for his donation. Devastated, Drew dialed Alexa to tell her the news. She didn't skip a beat. "I'll be your donor, Eric," she said. Two days before Christmas, Drew received Alexa's stem cells through a catheter in his chest. It would be three months before he would know if the stem cells had grafted, and he knew the odds were low. But he had no idea how low he could get.
 
During his treatment in Seattle, he began getting strange calls from credit card companies thanking him for his application. Drew shrugged it off as best he could until the collection agents started arriving at his door. There were a half dozen accounts opened in his name, with almost $10,000 in charges. "Please stop this!" Drew told one of the banks on the phone. "I'm in a hospital dying!"
 
But there was no stopping this thief. Here Drew was, on the verge of death, and someone was stripping away his last shred of humanity. He felt that his identity was being taken on every level. The disease was robbing him of his life. Some criminal was stealing his identity.

"The Man Who Lost His Name—and His Genetic Identity" [Discover] (Thanks to Jodie!)
(Photo: Discover) ]]>
Consumerist-378070 Wed, 09 Apr 2008 20:23:22 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=378070&view=rss&microfeed=true
<![CDATA[ Exclusive: AOL's Collections Guide Encourages Agents To Lie And Deceive ]]> An anonymous tipster sent us AOL's 153 page internal collections guidebook for prying money out of delinquent account holders. The guide shows that AOL is following some of the debt industry's most egregious collection tactics by encouraging agents to deceive and lie to customers. After the jump we present AOL's scare tactics, tricks to negotiating a substantial discount, and the full collections guide.

AOL lies to their customers and has a policy of refusing to escalate to supervisors:

http://consumerist.com/assets/resources/2008/04/3.2%20Won%27t%20Escalate-thumb.jpg

Apparently the trick to getting an actual supervisor is to pretend like you want to pay your bill. If you haven't used your account for more than three months you can receive up to a 40% discount, perfect for those who have tried and failed to cancel your account.

If you refuse to pay your bill, AOL will threaten to ruin your credit (with AOL):

http://consumerist.com/assets/resources/2008/04/3.2%20Discounts-thumb.jpg

You can practically see AOL's lawyers cackling with glee as they drape their cloak of legal protection while daring representatives to choose between ignoring the guidebook and failing to scare consumers into paying their debt.

AOL's abusive relationship with its "members" is not new, but it is surprising how enthusiastically they have embraced the standard lies and deceit peddled by the debt collection industry. According to our tipster, the guide is from 2006, but the tactics and policies remain unchanged.

The only way to fight back against scummy collectors is to know your rights under the Fair Debt Collection Practices Act.

Read AOL's full collections guide, complete with other despicable practices, here.

PREVIOUSLY: EXCLUSIVE: Old AOL Cancel Script vs. New
AOL Retention Manual Revealed
Quit AOL By Fax, Mail, or Phone

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Consumerist-376521 Sat, 05 Apr 2008 18:00:00 EDT Carey http://consumerist.com/index.php?op=postcommentfeed&postId=376521&view=rss&microfeed=true
<![CDATA[ Judge Wants To Know Why 31 Law Firms Are Seeking A Cut Of The "Credit Card Hidden Transaction Fee" Settlement ]]> Last year's class-action settlement against Mastercard, Visa, and several banks over the fees they charged customers who traveled abroad came up to about $336 million, and of that, 31 law firms are claiming a total of about $86 million for fees. The federal judge responsible for determining how much they get paid wants to know why.

"Can you explain to me why 31 law firms had to be involved with the plaintiffs?" Judge Pauley asked, adding that he "found a disconnect" between the number of the different groups of plaintiffs and the number of law firms. Ms. Sweeney [of Coughlin Stoia] explained that the "bulk of the work" - 84.7% - was done only by just six firms. Among those six firms are Ms. Sweeney's firm as well as the Philadelphia-based firms of Berger & Montague and Kohn Swift & Graf.
 
One sticking point yesterday involved a separate $32 million legal fee award that the card issuers had agreed to pay Coughlin Stoia and three other firms. The fee came in a similar lawsuit brought in California that was dismissed on appeal.
 
A lawyer who was objecting to the settlement, Irving Bizar, yesterday advised Judge Pauley to take those $32 million away from the law firms and add it to settlement pool.
Well, at least they brought the companies to justice for cheating their customers out of so much money—oh, wait, one lawyer on the case said that the $336 million represents only "between 9% and 42% of the fees that the card issuers had wrongfully charged." What's more, the current average payment for most class members (the ones who didn't send in itemized requests) will be about $25. Sometimes justice doesn't feel very satisfying.
 
"Judge Asks Why So Many Law Firms Seek Fees in Suits" [The New York Sun]
 
RELATED "Reclaim Unnecessary Credit Cards' Unnecessary Foreign Transaction Fees" (Photo: Getty) ]]>
Consumerist-374961 Wed, 02 Apr 2008 04:57:00 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=374961&view=rss&microfeed=true
<![CDATA[ Leukemia Survivor Settles ID Theft Lawsuit With TransUnion; Five More Companies To Go ]]> con_transunionsezsorry.jpg When Eric Drew was in the hospital being treated for leukemia five years ago, a lab technician stole his personal information and began opening up credit card accounts in his name. Drew had to fight with credit card and credit reporting companies to prove that he was a victim of identity theft, so he decided to go after them for their negligence and filed lawsuits against TransUnion, Bank of America, Chase, Citibank, Equifax and Experian. His recent settlement with TransUnion means the credit reporting agency will now "allow anyone who is hospitalized or elderly to file a claim of identity theft with a doctor's note, instead of having to provide a formal affidavit; permanently remove fraudulent information from a credit report; and offer a free credit freeze for identity theft victims."

Even when Drew called the companies that had issued him cards he had never applied for, the companies still sent him huge bills for items he never bought. And despite the fact that Richard Gibson, the hospital employee who stole his card, was convicted - the first in the nation under the Health Information Portability and Accountability Act - Drew's bad credit lingered for another two years.
 
Litigation is still pending with Bank of America, Chase, Citibank, Equifax and Experian.
According to another article in "Obesity, Fitness & Wellness Week" (no link is available) TransUnion has agreed to implement the policy changes within the next six months.
 
Update: A few weeks after this post went up, Discover magazine published a feature article about Drew and his battles.
 
"Credit bureau settles Los Gatos cancer survivor's suit" [Mercury News]
 
RELATED
"Leukemia Survivor Who Had Identity Stolen By Lab Tech Tells His Story" ]]>
Consumerist-373126 Thu, 27 Mar 2008 17:01:40 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=373126&view=rss&microfeed=true
<![CDATA[ CVS To Pay $36.7 Million For Improperly Switching Medications ]]> CVS has settled a lawsuit that alleges the pharmacy giant improperly switched customers to a more expensive form of their medication in order to collect more money from Medicaid.

A lawsuit alleging fraud by the chain-drugstore company was brought by an Illinois pharmacist and joined by the federal government and 23 states that paid for the medication.

The complaint, filed in 2003 in U.S. District Court for Northern Illinois, alleges that CVS pharmacies switched Medicaid patients taking the generic form of stomach medication Zantac to capsules from tablets. Medicaid sets maximum reimbursement prices for the tablet form of the drug but not for capsules, which are more expensive but prescribed less frequently by doctors.

The suit alleges that the switch cost taxpayers as much as 400% more than what would have been paid for tablets. The pill-switching allegedly took place from April 1, 1999, through Dec. 31, 2006.

The case was brought by Bernard Lisitza, who worked as a pharmacist processing CVS prescriptions. Mr. Lisitza previously filed a suit against pharmacy company Omnicare Inc. that settled in 2006 for $50 million. Both suits were filed under the False Claims Act, which allows people to file claims alleging fraud against the government and lets them recover a share of any payments.

Mr. Lisitza's share of the settlement will be $4.3 million. Sort of makes you wish you knew about fraud against the government, doesn't it?

CVS denied wrongdoing.

CVS to Pay $36.7 Million Over Claim Of Improper Switch of Medications [Wall Street Journal]
(Photo:afagen)

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Consumerist-369369 Tue, 18 Mar 2008 16:22:37 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=369369&view=rss&microfeed=true
<![CDATA[ Reebok To Pay $1 Million Fine After Lead Poisoning Death ]]> Two years ago athletic shoe giant Reebok announced a recall of 300,000 lead tainted charm bracelets that were given away as free gifts with the purchase of children's footwear.

In March 2006, a 4-year-old boy from Minneapolis who swallowed the bracelet's heart-shaped pendant died from lead poisoning. Now Reebok has agreed to pay a $1 million penalty, the largest ever for a Federal Hazardous Substances Act (FHSA) violation. Reebok denies wrongdoing.

Lead-tainted jewelry such as this charm bracelet is not uncommon these days. There were over 17 million items recalled for lead contamination in 2007 alone.


Reebok to Pay Record $1,000,000 Civil Penalty for Violation of Federal Hazardous Substances Act
[CPSC]

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Consumerist-369215 Tue, 18 Mar 2008 12:48:39 EDT Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=369215&view=rss&microfeed=true
<![CDATA[ 11 Drug Companies Agree To Pay $125 Million For Fixing Prices ]]> con_pillsandmoney300-1.jpg The Prescription Access Litigation (PAL) coalition filed suit against 11 drug companies in 2002 for artificially inflating the average wholesale price, or AWP, of certain drugs, including ones used to treat serious illnesses such as cancer and HIV. This week, PAL announced that the companies have agreed to pay $125 million to settle—82.5% of the amount will be used to compensate third-party payor's claims, and the remaining 17.5% will be used for consumer claims. Here's a list of the drugs involved, and after the jump is a quick guide to see whether you'll qualify for a claim, pending the judge's approval of the settlement.

According to PAL:

Medicare Part B recipients, health plans and individuals who paid for these drugs but were not on Medicare will be eligible to receive payments from this settlement once the Court finally approves it. The following types of individuals and entities will be eligible:

  • Patients on Medicare Part B who paid a percentage (i.e. not a fixed copayment, but 10%, 20%, etc.) of the cost of one of the drugs in the case, taken between Jan. 1, 1991 and Jan. 1, 2005.
  • Health Plans and other Third Party Payors who paid all or part of a Medicare Part B recipient's percentage co-insurance for one of the drugs.
  • Individuals not on Medicare Part B who paid all or part (a percentange) of the cost of one of the drugs taken between Jan 1, 1991 and March 1, 2008.
  • Health plans and other Third Party Payors who paid all or part of the cost of one of the drugs taken by an individual not on Medicare part B between Jan 1, 1991 and March 1, 2008.

"11 drug companies settlement AWP allegations for $125 Million" [Prescription Access Litigation]
(Photo: Getty)

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Consumerist-367240 Thu, 13 Mar 2008 11:00:18 EDT Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=367240&view=rss&microfeed=true
<![CDATA[ AT&T Mobility Agrees To Refund Money To Florida Customers & Pay $2.5 Million To State's CyberFraud Task Force ]]> con_attlogo.jpg Florida's Attorney General scored a victory for consumers last week, when AT&T Mobility agreed to refund fees that third-party vendors snuck onto thousands of accounts under the guise of "free" ringtones, wallpapers, and text content. They also agreed to hand over $2.5 million to help fund the state's recently-created CyberFraud Task Force, to spend $500,000 for "consumer education on safe Internet use," and to start policing third-party vendors better and make sure all billed items are clearly described.

McCollum said the main culprits are third-party companies that advertise ringtones and other services on the Internet, often promising that the service will be free. When customers—often teenagers—sign up, they or their parents are then surprised to find charges on their wireless bill.

"They will download this thinking it's free because the advertising on the Internet says it's free," McCollum said. And when the charge shows up on the bill, it's not always clear what it is, either, he added.

"This advertising is wrong, it's deceptive ... and it's all over the Internet," he said.

AT&T (T: 35.06, +0.23, +0.66%) Mobility has agreed in the settlement to police such agreements with third-party providers and make it clear what the charges are for.

"It's going to say 'ringtones,' and it's going to give them an opportunity to cancel," McCollum said.

"AT&T to repay Florida customers" [Orlando Business Journal]
"AT&T Mobility Agrees to Pay Consumers for 'Free' Ringtones" [Fox Business]

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Consumerist-363378 Mon, 03 Mar 2008 23:45:16 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=363378&view=rss&microfeed=true
<![CDATA[ Former electric heater company Vornado will ... ]]> con_tinyvornadoheater.jpg Former electric heater company Vornado will pay the government a civil penalty of $500,000 and deny any wrongdoing for failing to report incidents of heater fires from 1993 to 2004, says the CPSC. "In August 2004, CPSC and Vornado announced the recall of about one million portable electric heaters," then the company dissolved. [CPSC]

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Consumerist-352517 Mon, 04 Feb 2008 18:06:28 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=352517&view=rss&microfeed=true
<![CDATA[ GTA San Andreas "Hot Coffee" Settlement Offers $5 To Soothe Your Injured Mind ]]> Horribly offended by the GTA: San Andreas "Hot Coffee" mod in which you could (help, help) indulge in crude polygon sex? Great. You're being offered a $5 cash settlement.

GTA: San Andreas' developer has set up a website detailing the compensation one can expect to receive. The more detailed proof you have, the better your cash reward.

Grand Theft Auto: San Andreas First Edition Disc gets you a replacement disc. All other kinds of proof:

Detailed Store Receipt Cash payment up to $35.00
General Credit Card Statement or Check Cash payment up to $17.50
Disc/Purchase Details Cash payment up to $10.00
No Disc/Purchase Details Cash payment up to $5.00

To give your word that you totally really did have the game click here.

GTA Settlement
Hot Coffee [Wikipedia]

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Consumerist-350116 Tue, 29 Jan 2008 11:27:53 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=350116&view=rss&microfeed=true
<![CDATA[ Mann Free Movie Tickets Settlement Requires Your Credit Card Number ]]> con_graumanschinesetheatre.jpg Between December 2006 and January 2007, Mann Theatres in Southern California printed the expiration dates of credit cards on receipts. If you were one of the lucky suckers who saw a movie there during this period and paid via credit card, Mann's lawyers want to make things right by giving you two free movie tickets and some free popcorn. However, to qualify for the free tickets, you have to provide your credit card number. This is like the end of "The Lion King" where the new cub is held aloft—the circle of life continues.

(Thanks to David!)

"Mann Theatres owes you free tickets and popcorn" [Metroblogging Los Angeles]

RELATED
www.manntheatressettlement.com

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Consumerist-347527 Tue, 22 Jan 2008 11:02:50 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=347527&view=rss&microfeed=true
<![CDATA[ U-Haul To Pay California Customers $50 For Failing To Honor A Guaranteed Reservation ]]> Wheres%20UHaul.jpgU-Haul has settled a class-action suit by agreeing to pay customers $50 each time they fail to honor a confirmed reservation. The settlement comes after an appeals court agreed that the rental giant had "engaged in fraudulent practices."

San Francisco lawyer Thomas A. Cohen, an attorney for the class, called the settlement "a terrific resolution" and said plaintiffs had a right to return to court to bring a contempt motion if U-Haul was "somehow using words in a way . . . confusing to a customer."

The case involved U-Haul's practice of accepting all advance reservations booked online or with telephone reservation agents. Under the company policy, customers were to be told their reservation was "confirmed" and that they would be called the day before their move with instructions on where and when to pick up their equipment. According to the suit, many customers were forced to wait hours or days and travel long distances for the pickup.

In his ruling, Stevens said U-Haul had used "the words 'confirmed reservation' in order to lock up customers as soon as possible and minimize the chances that customers are going to shop around."

U-Haul will now call customers the day before a scheduled move and confirm the pickup time and location. If U-Haul then fails to honor the confirmed reservation, the customer gets $50. We hear that using a moving company other than U-Haul saves vastly more than a Grant's worth of grief and suffering.

U-Haul settles California class action [L.A. Times]
(Photo: PetroleumJelliffe)

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Consumerist-346986 Sun, 20 Jan 2008 14:48:47 EST Carey http://consumerist.com/index.php?op=postcommentfeed&postId=346986&view=rss&microfeed=true
<![CDATA[ Class Actions: Bed Bath & Beyond May Owe You A Small Amount Of Money ]]> bbb.jpgIf you bought sheets at Bed Bath & Beyond you may have some money coming to you from a class action settlement. BB&B has begun notifying customers that they've settled a class action lawsuit brought over the thread count in their sheets. Apparently, said sheets had been labeled in a non-standard manner.

From Home Textiles Today:

While denying any wrongdoing, the retailer said that under the settlement, for the next five years it will comply with ASTM standards that require thread counts to be labeled according to the number of yarns in a square inch of fabric, regardless of the number of plies, a standard that has also been adopted by the Federal Trade Commission.
Consumers who purchased the improperly labeled sheets are eligible for a full refund, providing that they have a receipt and want to return the sheets. If you like your sheets and want to keep them, you can get a $10 gift certificate or a 20% discount certificate, depending on what sort of proof of purchase you have.

The idea that a 20% coupon from BB&B is some sort of compensation is a bit laughable. We recently tried to leave our apartment and had to call the fire department to help rescue us from the wall of Bed, Bath & Beyond 20% off coupons that were blocking the exit.

Bed Bath & Beyond Thread Count Settlement (Thanks, Kenneth!)
BB&B will compensate consumers after thread count suit [Home Textiles Today]
(Photo:Morton Fox)

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Consumerist-345099 Tue, 15 Jan 2008 13:45:41 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=345099&view=rss&microfeed=true
<![CDATA[ Wisconsin-based hunting stand company Ardisam ... ]]> con_tinydeerrunsaway.jpg Wisconsin-based hunting stand company Ardisam Inc. has agreed to pay a $420,000 civil penalty to settle a government lawsuit. In 2004, the company recalled 78,000 hunting tree stands that "unexpectedly detached from trees," sending hunters tumbling to the ground. The suit alleged the company "failed to immediately report" the problem. [CPSC]

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Consumerist-344101 Fri, 11 Jan 2008 20:10:35 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=344101&view=rss&microfeed=true
<![CDATA[ Walgreens Implements "Scanner Price Guarantee" (But Only In California) ]]> con_walgreensdrugstoreflat.jpg For the next three years beginning this February, California Walgreens shoppers will enjoy a "Scanner Price Guarantee" that rewards customers who are overcharged at the register and bring it immediately to a cashier's attention. "If the item in question costs less than that amount, the customer will receive it free. Otherwise, $4 will be subtracted from the item's price or the customer can opt to take home a $4 gift card instead." The guarantee is part of a larger settlement Walgreens made with several California district attorney's offices regarding a lawsuit over price discrepancies at the register.

District attorneys' officials say audits performed in nearly two dozen counties showed that on several occasions, the electronic price scanners used at Walgreens checkout counters registered a higher price than the lowest posted or advertised price for the item scanned.
One deputy district attorney said she thought the overcharging was more "a question of negligence or carelessness"—"Often it's a question of old sales tags not being removed at the end of the sale." That doesn't really make us feel any better—why shouldn't we assume the same pricing errors occur at Walgreen's across the country, and at other retail chains as well?

In addition to the three-year-long $4 price guarantee, Walgreens agreed to the following terms:

  • Walgreens does not admit to any wrongdoing
  • It has to pay $767,000, of which about $349,000 will go to district attorney's offices ("which will go toward enforcement")
  • It's "required to begin regular, in-store price-check audits by employees and to keep records of the results."

"Settlement reached in price dispute" [Inside Bay Area] (Thanks to Kyle!)
(Photo: Payton Chung)

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Consumerist-341426 Mon, 07 Jan 2008 11:43:07 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=341426&view=rss&microfeed=true
<![CDATA[ Starbucks Settles Lawsuit After Employee Spills Hot Coffee On A Baby ]]> Starbucks has settled a lawsuit in which a barista accidentally spilled hot coffee on a 7-month-old baby.


Ethan Thorn was an infant when his parents brought him into a Starbucks in Somerville's Davis Square in April, 2006. According to the lawsuit, a store employee serving a cup of coffee to Ethan's father accidentally spilled coffee on the baby's legs and groin, causing second-degree burns. The baby was in his father's arms at the time.

The baby, now 2, was treated at Shriners Hospital in Boston over the course of several months, according to the lawsuit.

The $70,000 settlement does not require Starbucks to admit any liability, and will be placed in a trust for the boy.

Here's the odd part:

The suit, filed on behalf of the family by Manchester lawyer Orestes Brown, said the coffee shop employee "had a duty of reasonable care not to serve hot coffee to an infant."
What a strange way of wording it.

Starbucks settles suit over coffee-scalded infant for $70K [Gloucester Daily Times via Starbucks Gossip]
(Photo:Vince Brown (attila))

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Consumerist-338708 Fri, 28 Dec 2007 17:12:13 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=338708&view=rss&microfeed=true
<![CDATA[ Home Shopping Network Agrees To Pay $800k Civil Penalty ]]> con_thecornballer.jpg HSN has agreed to pay a civil penalty of $875,000, according to a CPSC press release, settling allegations that HSN "failed to report in a timely manner, as required by federal law, serious injuries and hazards with the Welbilt Electronic Pressure Cookers." The CPSC alleged that from 2001 to 2004, HSN received "at least 25 reports" from consumers that the cooking appliance was potentially unsafe. (In 2005 the cookers were recalled.)

"Under the Consumer Product Safety Act," writes the CPSC, "Manufacturers, distributors and retailers are required to immediately report to CPSC information about products that could create a substantial risk of injury to the public or that create an unreasonable risk of serious injury or death."

"Shopping Channel HSN Agrees to Pay $875,000 Civil Penalty" [CPSC]

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Consumerist-338362 Thu, 27 Dec 2007 23:18:48 EST Chris Walters http://consumerist.com/index.php?op=postcommentfeed&postId=338362&view=rss&microfeed=true
<![CDATA[ Vonage Probably Owes AT&T $39 Million For Patent Infringement ]]> brokage.jpgVonage has settled with AT&T over claims that the VOIP provider infringed on some patents held by the telecommunications giant.

The lawsuit was filed Oct 17. and a "tentative" settlement was reached a month later, supposedly for $39 million.

From PC World:

The settlement brings an unusually speedy end to the lawsuit, which was filed by AT&T on Oct. 17. It alleged Vonage wilfully infringed an AT&T patent related to telephone systems that allow people to make VoIP (voice-over-Internet Protocol) calls using standard telephone devices. A breakdown in talks between the two companies over the issue led to the lawsuit, said AT&T at the time.

Less than a month later, on Nov. 7, the two companies said they had tentatively agreed to a settlement. At that time Vonage said it would pay AT&T around US$39 million under the terms of the settlement.

Final terms were not disclosed on Friday when, in a brief statement, Vonage said the dispute had been settled.

I'm thinking of suing Vonage for patent infringement. Sure, I don't even own any patents, but at this point they're so busy handing out settlements, they'll probably cut me a check for like $400,000 without even noticing that there's no such company as "I'm Really Awesome Wireless, INC."

AT&T, Vonage End Patent Feud [PC World]

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Consumerist-337416 Mon, 24 Dec 2007 14:53:07 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=337416&view=rss&microfeed=true
<![CDATA[ Sprint to pay $52.2M in back taxes to several ... ]]> Sprint to pay $52.2M in back taxes to several towns in Missouri. [CNNMoney]

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Consumerist-336543 Thu, 20 Dec 2007 22:09:07 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=336543&view=rss&microfeed=true
<![CDATA[ Google, Yahoo! And Microsoft Reach Settlement Over Illegal Internet Gambling ]]> dogpoker.jpgThe Department of Justice says that Google, Yahoo! and Microsoft have reached a $31.5 million dollar settlement for promoting illegal gambling, according to Reuters.

The companies were accused of receiving money from online gambling businesses to advertise illegal betting from 1997 through 2007.

As part of the settlement, the companies will pay cash to the U.S. government and provide millions of dollars worth of public service advertisements informing young adults and teenagers that Internet gambling is illegal.

We just can't wait for those ads. Do teenagers internet gamble a lot? Or does public service advertising just automatically target them because they're the easiest people to patronize?


Microsoft, Google and Yahoo settle gambling claims
[Reuters]
(Photo:Getty)

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Consumerist-336327 Thu, 20 Dec 2007 13:53:53 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=336327&view=rss&microfeed=true
<![CDATA[ TJX To Pay Up To 40.9 Million For Data Breach ]]> tjmaxxxxxxx.jpgTJX will be paying as much as 40.9 million in a settlement with Visa and the bank that processes their credit card payments , says the Associated Press.
The funds will be used to help U.S. credit card issuers such as banks recover costs related to the breach, which may have exposed more than 100 million cards to potential fraud, TJX said.

The breach is believed to be the largest ever, based on the number of customer records involved.

Issuers of at least 80% of eligible cards must accept the offer by Dec. 19 for the settlement to take effect, said Framingham, Mass.-based TJX, owner of about 2,500 stores including T.J. Maxx and Marshalls.

Perhaps TJX will set an example of how important (to the bottom line) protecting your customer's information really is.

Cross your fingers.

TJX will pay up to $40.9M for data breach [USAToday]

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Consumerist-328650 Fri, 30 Nov 2007 14:59:22 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=328650&view=rss&microfeed=true
<![CDATA[ Is The RIAA Afraid Of Harvard? ]]> Of all the Ivy League schools, Harvard is the only one to have escaped the deluge of RIAA pre-litigation letters. What gives?

Ars Technica speculates:

There may be another factor at work here: hostility towards the RIAA's campaign on the part of Harvard Law School professors Charles Nesson and John Palfrey, who run the law school's Berkman Center for Internet & Society. Responding to the RIAA's claim that its litigation strategy has "invigorated a meaningful conversation on college campuses about music theft, its consequences and the numerous ways to enjoy legal music," the profs called on Harvard to not betray the "trust and privacy" of its students.

"The university has no legal obligation to deliver the RIAA's messages. It should do so only if it believes that's consonant with the university's mission," wrote Nesson and Palfrey. "[The RIAA seems] to be engaging in a classic tactic of the bully facing someone much weaker: threatening such dire consequences that the students settle without the issue going to court. The issue is that the university should not be carrying the industry's water in bringing lawsuits."

Meanwhile, the 68-year-old CEO of Universal Music Group, Doug "Repositories For Stolen Music" Morris, recently told Wired that the record industry was (is?) so clueless about technology that they couldn't even figure out if someone was lying to them or not:
Morris insists there wasn't a thing he or anyone else could have done differently. "There's no one in the record company that's a technologist," Morris explains. "That's a misconception writers make all the time, that the record industry missed this. They didn't. They just didn't know what to do. It's like if you were suddenly asked to operate on your dog to remove his kidney. What would you do?"

Personally, I would hire a vet. But to Morris, even that wasn't an option. "We didn't know who to hire," he says, becoming more agitated. "I wouldn't be able to recognize a good technology person — anyone with a good bullshit story would have gotten past me." Morris' almost willful cluelessness is telling. "He wasn't prepared for a business that was going to be so totally disrupted by technology," says a longtime industry insider who has worked with Morris. "He just doesn't have that kind of mind."

Why the RIAA may be afraid of targeting Harvard students [Ars Technica]
Universal's CEO Once Called iPod Users Thieves. Now He's Giving Songs Away. [Wired via BoingBoing]
(Photo:Joe Shlabotnik)

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Consumerist-327101 Tue, 27 Nov 2007 15:51:33 EST Meg Marco http://consumerist.com/index.php?op=postcommentfeed&postId=327101&view=rss&microfeed=true