AT&T fights back at anti-merger arbitration cases

AT&T has filed lawsuits in viii different jurisdictions to defend itself against a wave of mediation cases filed by Bursor & Fisher on behalf of over 1000 AT&T customers. The New York law firm started a website called FightTheMerger.com to find a horde of AT&T users to file individual arbitration cases confronting Ma Bell, in order to prevent the acquisition of T-Mobile. The method of attack was called because AT&T's terms of service bar customers from filing lawsuits against them, instead offering the option of third-party mediation.

AT&T issued a statement to each court claiming that Bursor & Fisher intend to proceed with each case individually, that they are really launching a thinly-veiled class-action suit, which is prohibited by the terms of service too.

"This merger will provide tremendous benefits for customers and unleash billions of dollars in badly needed investment, creating many thousands of well-paying jobs that are vitally needed given our weakened economy — a fact that's been recognized past consumers, public officials, and groups of all types. However, the bottom line here is an arbitrator has no dominance to cake the merger or affect the merger process in any style. AT&T's mediation understanding with our customers — recently upheld by the Supreme Court — allows individual relief for individual claims. Bursor & Fisher is seeking form-wide relief wrapped in the guise of individual arbitration proceedings, which is specifically prohibited by AT&T;s mediation agreement. Accordingly, the claims are completely without merit. We have filed suit in order to stop this abusive action."

So information technology looks like a battle of semantics versus loopholes that will ultimately be decided in the courts. Just even if AT&T prevails in this matter, in that location is still a long route ahead. A seemingly wary FCC notwithstanding needs to corroborate the bargain, and in that location is a long list of other challengers every bit well, including advocacy groups, politicians and other carriers.

Source: AllThingsD; Via: TechCrunch

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