UNFAIR BUSINESS PRACTICES
 

Securities Class Action Suit Filed Against Southwestern Bell (doing business as Cellular One)

On February 4, 1999, the firm of Shapiro Haber & Urmy LLP filed a class action on February 11, 1997, entitled Smilow et al. v. Southwestern Bell, 96-10585, in the United States District Court for the District of Massachusetts, against Southwestern Bell (doing business as Cellular One) for overcharging calls.

The class consists of customers who entered into contracts with Cellular One in Massachusetts between early 1994 and mid-1996. The complaint alleges that Cellular One customers were billed for calls contrary to the terms of their Cellular One contracts, and violating the Telecommunications Act and Chapter 93A of the Mass. General Code. Specifically, the complaint alleges that Cellular One billed its subscribers for incoming calls, a practice which is not described in their contract. In addition, although the contract stated that calls would be billed from the time a call was initiated until it was terminated, calls were rounded up to the nearest whole minute so customers were charged for more time than they actually used. Since the case was filed, Cellular One has changed its contracts in Massachusetts. However, the case asserts claims for damages on behalf of persons whose earlier contracts were violated for the losses they incurred. The court recently certified the suit as a class action.