Class Action

Claims Against AT&T and Apple Survive

By classlawblog

On October 1, 2008, a federal judge in the Northern District of California permitted a class action lawsuit to proceed against Apple and AT&T Mobility for violations of the U.S. antitrust laws. The Court held that AT&T’s and Apple’s five-year exclusive voice and data service provider agreement, restricting users? ability to use unapproved third-party iPhone applications, could violate the anti-monopoly provisions of the antitrust laws.

The Court also permitted claims against Apple under common law fraud, as well as the Computer Fraud Abuse Act and the California Penal Code, for releasing version 1.1.1 of its iPhone operating software when Apple knew that doing so would damage or destroy some iPhones that had been ?unlocked? to enable use of a carrier other than AT&T.  The Court refused to enforce the mandatory arbitration clause in AT&T’s service contract holding that the term is unconscionable under California, New York, and Washington State law. To view the decision, click here.

Full post as published by ClassLawBlog.com on October 12, 2008 (boomark / email).