Please ensure Javascript is enabled for purposes of website accessibility
Verizon, AT&T Reach $116 Million California Settlement
gvw_ap_news
By Associated Press
Published 5 years ago on
September 24, 2020

Share

SACRAMENTO — The nation’s largest cellphone providers will pay a combined $116 million under a settlement approved Thursday in a California lawsuit alleging that they overcharged government customers for wireless services over more than a decade.

Verizon will pay $68 million and AT&T Mobility $48 million to settle claims that they violated cost-saving agreements included in wireless contracts with state and local governments. Sprint and T-Mobile previously agreed to pay a combined $9.6 million.

Verizon will pay $68 million and AT&T Mobility $48 million to settle claims that they violated cost-saving agreements included in wireless contracts with state and local governments. Sprint and T-Mobile previously agreed to pay a combined $9.6 million.

Attorneys who filed the suit said it is the second-largest California False Claims Act settlement outside of the health care industry.

The California Attorney General’s Office decided not to sue after its own investigation of the government contracts in California and Nevada, said Verizon spokesman Rich Young, so a whistleblower sued in 2012 using a provision of the act that allows for such independent lawsuits on the state’s behalf.

Young said Verizon “settled these meritless claims to avoid a protracted legal battle.” AT&T spokesman Jim Greer similarly said his company “complied with our contracts and the law” and denied wrongdoing, but settled to avoid costly litigation.

‘This Is Real Money to California’s Schools, Local Governments and State Agencies’

The suit says the companies failed to live up to their agreements to charge nearly 300 state and local governments the lowest available cost and tailor their dozens of frequently changing rate plans accordingly based on actual usage patterns.

The plaintiffs’ attorneys said the largest users recovering money under the settlement are the state of California, the California State University and University of California systems, Los Angeles County, and Sacramento, San Diego, San Francisco, and Riverside city and county governments.

The whistleblower plaintiff, OnTheGo Wireless LLC, was formed by Jeffrey Smith after his firm used software applications to compare rate plans and concluded the companies did not offer the governments the lowest possible prices. His firm will get about 40% of the settlement, he and the attorneys said in a statement.

“It may be a rounding error to Verizon and AT&T, but this is real money to California’s schools, local governments and state agencies who spent years scraping through their budget to pay what we now know were over-inflated bills,” said Wayne Lamprey of the Constantine Cannon law firm, who filed the lawsuit and was lead counsel.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

DON'T MISS

Fresno City Council Finally Passes a Tough Smoke Shop Ordinance

DON'T MISS

Fresno Unified Trustee Wittrup Says District Had Stronger Candidates Than Misty Her

DON'T MISS

Trump Poised to Offer Saudi Arabia Over $100 Billion Arms Package, Sources Say

DON'T MISS

Lights, Camera, Board Vote: Fresno Unified’s Carefully Choreographed Production

DON'T MISS

US Farm Agency Withdraws Proposal Aimed at Lowering Salmonella Risks in Poultry

DON'T MISS

On Major Economic Decisions, Trump Blinks, and Then Blinks Again

DON'T MISS

Candi Is the Dandy to Add a Little Sweetness to Your Life

DON'T MISS

How Trump Tariffs Could Upend California Farms, Wine Businesses, and Ports

DON'T MISS

Tulare Man Sentenced to State Prison for DUI Crash That Injured Two Women

UP NEXT

Chicago Bears Great Steve McMichael Dies at 67 After Battle With ALS

UP NEXT

Long Wait Is Over for Cam Ward, Travis Hunter and Other Draft Prospects Joining the NFL

UP NEXT

Golden State’s Jimmy Butler Injured in Game 2 Loss, His Status for Game 3 Unknown

UP NEXT

Jalen Green Makes Eight 3s to Help Rockets Even Series With Warriors

UP NEXT

US Justice Department Directs Investigations Over Gender-Affirming Care

UP NEXT

US Justice Department Cancels Hundreds of Grants for Police, Crime Victims

UP NEXT

Yelich’s 5th Career Slam and Bauers’ 2-Run Homer Power the Brewers to Win Over the Giants

UP NEXT

Happ Hits Game-Ending Single in the 10th as the Cubs Rally Past Dodgers

UP NEXT

Trump: No Plans to Fire Fed Chair Powell, but Wants Lower Rates

UP NEXT

Top Producer at ’60 Minutes’ Quits Amid Trump Lawsuit Pressure

Trump Poised to Offer Saudi Arabia Over $100 Billion Arms Package, Sources Say

8 hours ago

Lights, Camera, Board Vote: Fresno Unified’s Carefully Choreographed Production

9 hours ago

US Farm Agency Withdraws Proposal Aimed at Lowering Salmonella Risks in Poultry

9 hours ago

On Major Economic Decisions, Trump Blinks, and Then Blinks Again

9 hours ago

Candi Is the Dandy to Add a Little Sweetness to Your Life

10 hours ago

How Trump Tariffs Could Upend California Farms, Wine Businesses, and Ports

10 hours ago

Tulare Man Sentenced to State Prison for DUI Crash That Injured Two Women

11 hours ago

Judge Partly Blocks Trump Order Seeking to Overhaul US Elections

11 hours ago

Two From Search Group That Uncovered Mexico’s ‘Ranch of Horror’ Killed

12 hours ago

US Warns States They Could Lose Transportation Funding Over Immigration, DEI Policies

12 hours ago

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

SAN FRANCISCO — Mike Yastrzemski and Matt Chapman homered as the San Francisco Giants rallied to beat the Milwaukee Brewers 6-5 on Thursday ...

6 hours ago

6 hours ago

Yastrzemski and Chapman Homers Help Giants Rally Past the Brewers

6 hours ago

Fresno City Council Finally Passes a Tough Smoke Shop Ordinance

7 hours ago

Fresno Unified Trustee Wittrup Says District Had Stronger Candidates Than Misty Her

President Donald Trump delivers remarks during an 'Unleashing American Energy' event at the Department of Energy in Washington, U.S., June 29, 2017. (REUTERS File)
8 hours ago

Trump Poised to Offer Saudi Arabia Over $100 Billion Arms Package, Sources Say

9 hours ago

Lights, Camera, Board Vote: Fresno Unified’s Carefully Choreographed Production

Chickens sit at a poultry farm. March 12, 2025. (REUTERS/Diego Vara/File Photo)
9 hours ago

US Farm Agency Withdraws Proposal Aimed at Lowering Salmonella Risks in Poultry

9 hours ago

On Major Economic Decisions, Trump Blinks, and Then Blinks Again

Candi, GV Wire's Adoptable Cat of the Week
10 hours ago

Candi Is the Dandy to Add a Little Sweetness to Your Life

Help continue the work that gets you the news that matters most.

Search

Send this to a friend