Class Action Over AT&T Premium Phones Revived

(CN) - A California appeals court reinstated a class action accusing AT&T Wireless Services of selling premium cell phones that were useless.

Joshua Morgan and a group of California consumers sued AT&T, alleging fraud and consumer law violations.

They said AT&T sold them premium phones but then upgraded the network, rendering the premium phones useless.

The trial court ruled for AT&T, stating that the plaintiffs did not identify an actionable misrepresentation in their 47-page complaint.

The 2nd District Court of Appeal in Los Angeles reversed the dismissal, finding that the class members alleged sufficient causes of action for fraud and violations of the Unfair Competition Law and Consumers Legal Remedies Act.

"Plaintiffs assert that AT&T sold an expensive product that needed a specific service to operate and implied that it would provide that service for some years ... and that plaintiffs and other class members were deceived because AT&T failed to disclose it would essentially 'turn off' the service within two years," Justice Wilhite wrote.

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