Cellphone insurers reach settlement in class action lawsuit

A federal judge in Miami gave preliminary approval to a settlement in a class action lawsuit against Asurion Corp., one of several major cellphone insurers sued for allegedly deceiving wireless customers, according to court records.
The suit, brought by Maria Prohias, Carlos Perez and others last year, claims Asurion and other mobile-phone insurers broke the law by collecting millions of dollars in premiums from customers only to demand unreasonable deductibles to provide customers with refurbished phones or handsets whose value in some cases was less than the deductible itself. The proposed settlement, which could become final in May, will cover similar allegations leveled against Lock/lines, underwritten by Continental Insurance Co. and acquired by Asurion last year. The next status conference is set for Feb. 14.
Consumers normally pay insurers between $5 and $10 per month to protect against cellphone damage or loss, and then pluck down a $50 deductible if making a claim. But many subscribers found themselves disappointed with their replacement mobile phones.
The class action complaint against the third big player-Signal Co.-appears to be ongoing.
“Asurion does not discuss pending litigation,” said a company spokeswoman.
Adam Moskowitz, the lead Miami-based attorney for the plaintiffs, did not respond to requests for comment.
Individuals reportedly could receive vouchers worth $75 to $100 for the purchase of a new phone, while other customers will be eligible for $5 phone cards.