Princeton Economics Group, Inc. v. American Telephone and Telegraph Company


200,000

Class Members

$90,000,000

Settlement Fund

03-17-1995

Date

Case Description


Class Plaintiffs alleged that AT&T violated the New Jersey Consumer Fraud Act by misinforming consumers about approximately 32 discrete product features on Spirit Communication System which contained a multi-party conference call capability that did not operate properly. In the resulting settlement, AT&T issued 3,200,000 freely transferable coupons to approximately 200,000 eligible class members. Each coupon had a maximum face value of $50 per coupon and was worth up to a 20% discount off of the purchase of eligible telephone systems and equipment.

   

Coupon holders were entitled one of the following options: 

 

  • 20% discount off the best-negotiated price on selected AT&T phone systems


  • 20% discount toward the purchase of a 4-year maintenance contract


  • 20% discount toward the purchase of selected phone products from AT&T's sourcebook

 

Counsel for Plaintiffs:

Lester L. Levy (Wolf Popper Ross Wolf & Jones L.L.P)

Robert J. Berg (Wolf Popper Ross Wolf & Jones L.L.P)

Allyn Z. Lite (Goldstein Till & Lite L.L.P)

 

Counsel for Defendants:

Matthew P. Boylan (Lowenstein, Sandler, Kohl, Fisher & Boylan L.L.P)

 

Zulima V. Farber (Lowenstein, Sandler, Kohl, Fisher & Boylan L.L.P)

 

Legal Documents

Settlement Agreement

Notice

Judge's Order

 

 

 

Court Information


Case #
L-91-3321
Case Type
Antitrust
Court Type
Superior Court
Jurisdiction
Superior Court of New Jersey
Judge
Philip Carchman
Industry

CCC Performance


CCC played a crucial role as the market maker in the approval of the case’s settlement; Superior Court Judge Philip Carchman even stated that he would not have approved the settlement but for the existence of CCC as its market maker. CCC bought and sold approximately 260,000 coupons. Approximately 150,000 coupons were redeemed outside of CCC, less than 5% of the total amount of coupons. As the market maker, CCC more than doubled the amount of coupons that were redeemed, displaying CCC’s ability to effectively generate relief for the class.

 

CCC could have facilitated the transaction of more coupons, but AT&T covertly shut down the market for coupons by rendering the coupons not redeemable at stores and not accepting the coupons from vendors. CCC sued AT&T as part of a class for effectively closing the market before the coupons expired. The class won the case and was awarded $15 million.

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