9th Circ. Gives Go-Ahead To AT&T Fee Class Action

Law360, New York (October 27, 2009, 7:36 PM EDT) -- A federal appeals court has greenlighted a class action over AT&T Mobility LLC's fees, saying the arbitration clause in the cell phone company's standard contracts is unconscionable despite company efforts to creatively rejig it.

The U.S. Court of Appeals for the Ninth Circuit on Tuesday upheld a district court decision against AT&T, tossing the company's arguments that it had sufficiently changed its arbitration clause to render it enforceable.

AT&T had fought to force customers to arbitration after they filed a class action over “free” phones that...
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