Law Firms Announce Plan to Distribute Part of Judgment Obtained in a Class Action Lawsuit Against AT&T

KANSAS CITY, Kan., Feb. 7, 2011 /PRNewswire/ -- The following statement is being issued by Heins Mills & Olson P.L.C., Stanley Iola LLP, and Susman Godfrey LLP pursuant to an order of the United States District Court for the District of Kansas:

TO: All AT&T residential wireline (land line, not mobile) long distance customers in the State of California who paid a Universal Service Fund ("USF") Charge between August 1, 2001 and March 31, 2003 ("California Class").

A federal court in Kansas will consider a plan to distribute part of a $16,477,958.41 judgment obtained in a class action lawsuit against AT&T. The distribution will be to current and former AT&T residential wireline customers in the State of California who paid Universal Service Fund ("USF") charges between August 1, 2001 and March 31, 2003. The USF is intended to help provide affordable telecommunications services for low-income customers and customers in rural areas. Class members who submit claims may qualify for a cash payment of up to $1,000.00 per valid claim depending on the number of claims submitted. Individuals may submit claims covering each AT&T line they possessed during the class period.

The case is known as In re Universal Service Fund Telephone Billing Practices Litigation, MDL No. 1468 (U.S. District Court for the District of Kansas).

In November 2008, a federal jury found that AT&T breached its contracts with customers in California by imposing charges on its customers' bills that were greater than necessary to recover amounts AT&T was required to pay into the federal USF program. On March 4, 2009, the District Court entered an Amended Judgment of $16,477,958.41 in favor of the Class. That judgment was affirmed on appeal.

To be eligible to participate in the fund, class members must submit a Proof of Claim form, which may be obtained by visiting www.usfjudgment.com or calling 1-800-961-7416. The Proof of Claim form must be postmarked on or before April 29, 2011. Claimants will be required to submit the name(s) on the account(s), the AT&T residential wireline telephone number(s), a current mailing address, and proof of billing to the AT&T residential wireline telephone number(s) (if available) between August 1, 2001 and March 31, 2003.

Class Counsel seek an attorneys' fee award of 33-1/3 percent of the amended judgment amount, including a proportionate share of the accumulated post-judgment interest. Class Counsel also seek reimbursement of $3,064,074.40 of expenses incurred. Class Counsel has also asked that $500,000 be reserved from the judgment to cover the costs of notice and claims administration. The Court will convene a hearing on April 11, 2011, beginning at 9:30 a.m., at the United States Courthouse, 500 State Avenue, Room 517, Kansas City, Kansas. At the hearing, the Court will determine whether the distribution plan is reasonable and also will decide whether to grant Class Counsel's request for attorneys' fees and reimbursement of litigation expenses.

Class members may object to the manner of distribution of the award amount or the award of attorneys' fees and reimbursement of expenses by filing written objections with the Court. Objections must be postmarked on or before March 18, 2011, and mailed to the Clerk of the Court, United States District Court for the District of Kansas, United States Courthouse, 500 State Avenue, Kansas City, Kansas 66101. Any such objections should indicate that it relates to the litigation identified above.

All questions about the class action should be directed to the Claims Administrator at:

SOURCE Susman Godfrey LLP