Customers May Get $1B In AT&T Tax Suit Settlement

Law360, New York (June 2, 2011, 10:09 PM EDT) -- An Illinois federal judge on Thursday gave final approval to a settlement in a class action accusing AT&T Mobility LLC of collecting illegal taxes on mobile service, a deal that allows plaintiffs to recover a potential $1 billion from governments.

AT&T must now start to approach state and local jurisdictions across the U.S. and ask them to refund taxes that the plaintiffs claim were collected in violation of Internet Tax Freedom Act, a federal law that prohibits states from imposing taxes on Internet access. AT&T charged...
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