AT&T, Customers Told To Arbitrate In IPad Data Action

Law360, New York (July 20, 2011, 5:29 PM EDT) -- A California federal judge on Tuesday upheld contested arbitration agreements in a proposed consolidated class action alleging AT&T Mobility LLC and Apple Inc. pulled a bait and switch with an iPad data plan, ordering most plaintiffs to arbitrate claims against AT&T.

The plaintiffs accuse AT&T and Apple of convincing customers to pay $130 extra for the upgraded 3G-enabled iPad by offering an unlimited data plan option, then yanking that option just weeks after the product hit shelves.

The companies also advertised a flexible option, which allowed...
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