Atlanta, GA: A long-running class action against EarthLink, an internet service provider based in Atlanta, has finally been settled for a reported $3.7 million, which will be divided among the plaintiffs and the attorneys, with three lead plaintiffs each receiving $7,500.
The suit alleged that EarthLink improperly levied early termination fees against its customers, and some 850,000 customers signed up for the class action. EarthLink has therefore agreed, as part of the settlement, to refund half of the fees to the class, and end any efforts underway to collect outstanding fees or report customers who owe early termination fees to credit reporting bureaus, Law.com reports.
The suit was filed in 2005 by Deborah Eaves, William O'Hara and David Tegart who had been charged $149.99 in early termination fees for trying to end their contracts before the one year contract time had expired. The suit alleged that EarthLink's billing practices were deceptive and designed to extract improper fees and to deter customers from seeking other Internet providers. They also characterized the amount of the fees as "unconscionable." As a result , the settlement stipulates that EarthLink will drop its ETFs from $149.95 to $90.
Furthermore, the settlement terms include the stipulation that EarthLink reduce its DSL and home telephone fees as well as reduce its home networking service from $79.95 to $48. There are additional terms to the settlement involving the fees, and EarthLink has reportedly mailed notices out to 859,664 customers which the company has identified as having paid fees.
