MCI Class Action Lawsuit

GIRARD GIBBS CO-LEAD COUNSEL IN LARGEST-EVER TELCO CLASS ACTION SETTLEMENT

In 1999-2003, Girard Gibbs served as co-Lead Counsel in the largest consumer telecommunications class action settlement in history, settling for over $90 million in cash. This class action lawsuit was brought on behalf of MCI WorldCom customers who were improperly charged MCI's high "non-subscriber" or "casual caller" rates for direct-dialed long distance calls (approximately $3 for the first minute and $0.40 per minute thereafter). The practice affected thousands of MCI customers who thought they would receive reasonable long-distance rates under MCI's advertised rate plans such as "5-Cents Sunday," but were instead billed at MCI's extremely high non-subscriber rates. The cash settlement allowed customers to seek a flat $75 cash payment or a refund of the improper overcharges through a simplified claims process which Class Members could access by phone, internet or mail.

The class action lawsuit alleged violations of the Communications Act of 1934 as amended by the 1996 Telecommunications Act and violations of state consumer protection statutes.

On March 29, 2001, the Court approved a settlement for over $90 million in cash.

Girard Gibbs is also currently in the process of gathering information from consumers and MCI for the purpose of filing a motion for an order certifying another class. The more recent complaint alleges that MCI enrolled non-customers and former MCI long-distance subscribers without their knowledge or consent in the "Basic Dial-1 Plan" or another MCI calling plan that carries a monthly service fee.

For more information about this current case, please click the links on the right.