Cable & Wireless Class Action Lawsuit

Girard Gibbs Achieves $7.7 Million Settlement for C&W Customers

Girard Gibbs filed a class action lawsuit against the long distance carrier Cable & Wireless (“C&W”), alleging that the company improperly charged their customers for recurring PICC charges.

Long distance carriers, such as Cable & Wireless, make use of local telephone networks when processing long distance calls. In exchange for this service, local telephone companies assess charges from long distance companies, known as “Presubscribed Interexchange Carrier Charges” or “PICCs.” Long distance companies may then subsequently pass these charges on to their customers.

According to the lawsuit, C&W described their methodology for assessing PICC charges from customers in a tariff submitted to the Federal Communication Commission. The tariff stated that C&W would base their monthly rate for PICC charges on the number and type of phone lines (such as residential and business), for which a customer subscribed to C&W long distance.

The lawsuit alleged that C&W assessed PICC charges from customers at a greater rate, than the rates set forth in the tariff. By doing this, the lawsuit contended, C&W violated the Federal Communications Act. 47 U.S.C. 203 (c) of the Federal Communications Act stipulates that, telecommunication carriers may not “charge, demand, collect, or receive a greater or less or different compensation” than the amount specified in the tariff.

On October 27, 2005, United States District Court Judge Edward F. Harrington District of Massachusetts, granted final approval of a $7.7 million settlement. The settlement was used to provide cash reimbursement to class members.

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm representing consumers, investors, employees, and small businesses in cases involving consumer protection, personal injury, securities, antitrust, and employment laws. The firm’s senior partners, Daniel Girard and Eric Gibbs, have been selected for inclusion in The Best Lawyers in America® 2012 and Northern California Super Lawyers, and have earned AV-Preeminent ratings from Martindale-Hubbell, recognizing them in the highest class of attorneys for professional ethics and legal skills.