Prison Phone Provider Hit With Class Action Over Rates

Law360, Washington (June 15, 2015, 1:07 PM EDT) -- Global Tel*Link Corp. was slapped with a class action in Arkansas federal court on Friday accusing the prison payphone provider of exploiting inmates by gouging prices at 2,200 prisons and jails in 48 states.

Representative plaintiffs Jacqueline Mills Jacobs, Gregory William Jacobs and Arron Jacobs accused GTL of violating the Federal Communications Act and gaining unjust enrichment by charging "unreasonable and unjust" rates for phone services within correctional facilities that can be 100 times what market rates would be in the outside world. They also sued on behalf of a subclass under an Arkansas deceptive trade practices statute.

The company exploits...

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