AT&T faces class action over Cingular acquisition

The 9th U.S Circuit Court of Appeals gave the go-ahead to a class action consumer suit claiming Cingular Wireless service deteriorated after the mobile phone carrier was fully acquired by AT&T Inc. in 2004.
The three-judge appeals panel in San Francisco reversed a lower court’s order compelling arbitration for disgruntled wireless subscribers, concluding the class arbitration waiver in wireless contracts is unenforceable under California law. The 9th Circuit said its decision is consistent with at least 10 other cases that have come before federal courts in the state. Several of them have involved then-Cingular Wireless.
“It’s a major victory for consumers and hopefully the trend will continue uninterrupted in the courts of other states,” said William Weinstein, lead plaintiffs’ attorney at Sanford, Wittels & Heisler.
AT&T faces at least one similar suit in Washington state.
“We’re still reviewing this opinion. This opinion is based on our old arbitration clause. We have significantly improved that clause to make it even more consumer friendly. We believe arbitration is the best course of resolution for our customers,” said AT&T in a statement.