A California court has brought down a judgment against some of the largest wireless companies in the country. The the companies named in the wireless company lawsuit include Sprint, Verizon, T-Mobile, and others. The judgment ruled that none of the above named wireless providers will be able to dismiss or mitigate any of the charges currently being brought against them. The most serious of the charges alleges that these companies overcharged California state government clients a sum of over $100 million.
The Case Is Now Moving On to The Discovery Phase
The ruling came down on September 13 and is expected to mark the beginning of a whole new phase of penalty judgments against these companies. According to an official statement made by Judge Judy Holzer Hersher from the Superior Court of California, based in Sacramento, the case will now move forward despite the efforts of attorneys on behalf of the carriers to delay it. This means that the case will now move to the discovery (evidence gathering) stage.
What Does the Wireless Fraud Case Mean for Citizens Of California?
The present case has several important ramifications for citizens of the state of California. The indictment for fraud contains the allegations that the above named wireless companies willfully overcharged California state government clients more than $100 million. This was accomplished – so the indictment alleges – by intentionally neglecting to honor the requirements of the agreed upon contract. By doing so, the companies illegally extended the period under which they serviced California state government customers at premium rates, resulting in a massive overcharge.
The Case Has Spread Throughout the State of California
The original case was filed in 2012. Although initially limited to the area of Sacramento, it has since spread far and wide throughout the state of California. So far, 43 California state government organizations and dependencies have joined the suit. For the record, some of these organizations include the University of California, as well as other representatives of some of the largest counties and organizations in the state.
What Do the Charges Against the Wireless Companies Boil Down to?
The wireless carriers are charged with having willfully failed to comply with two cost efficient measures that they guaranteed under contract with their customers in the California state government. The carriers were required to calculate and then report to their government clients the exact rate plan selections that should result in the lowest amount of charges. This is the normal service, known as “rate plan optimization”, that was guaranteed in the contract that the clients signed with these companies.
The entire point of the above named arrangement is to give customers to choose wireless services that most closely match their actual usage patterns. By offering such an arrangement to customers, the carriers will normally pass on a savings of up to 20 to 30 percent over the course of the contract. By allegedly failing by design to do so, the wireless companies thus allowed their customers to pay over $100 million in usage fees more than they normally would have.
The Case May Have Enormous Implications Beyond the State of California
While the case is still in its early stages, industry observers are already alleging that it may well go on to have enormous impact outside the state of California. Many critics and customers alike have long suspected that such doings occur with more regularity than might at first be suspected. With the appearance of solid evidence, the case may well lead to a flurry of similar wireless company lawsuits filed on behalf of clients all across the country, and perhaps even beyond.
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