TW Cable Settles to Avoid Big Payout
[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]
[FONT=Arial, Helvetica, sans-serif]FEBRUARY 06, 2006 -
[/FONT][FONT=Arial, Helvetica, sans-serif]Time Warner Cable subscribers may be eligible for free service in the wake of a proposed settlement of a class action lawsuit.
The lawsuit claims that between Jan. 1, 1994 and Dec. 31, 1998, Time Warner sold the names of subscribers to direct marketers, in violation of the Cable Act of 1984.
Under the terms of a recently devised provisional settlement––a hearing is scheduled for May 19 in the U.S. District Court for the Eastern District of New York in Brooklyn––subscribers whose information may have been sold can receive one free month of any Time Warner Cable service they don’t already have or two free movies on demand. Those who are no longer Time Warner subscribers can be reconnected for free, and will receive one complimentary month of any Time Warner Cable service, with the exception of movies on demand.
While the potential number of claimants is nearly 12 million, a document filed with the U.S Court of Appeals in September 2002 indicates that the plaintiffs did not “actually seek to certify a class of all 12 million subs.” An attorney for the two subscribers who brought the suit, Andrew Parker and Eric DeBrauwere, told the court “there is simply no number because we have had no discovery as to the number of people who have actually been injured. We think it is a large number. We have no idea of whether it’s 13 million or 1 million or 1,000.”
Time Warner does not admit to any wrongdoing in the matter. It is unlikely that the company will appeal should the court uphold the provisional settlement, as the settlement releases Time Warner from liability.
Claims must be posted by May 4, 2006.
One legal observer estimates that the litigation has cost Time Warner nearly $5 million in billable hours since the lawsuit was introduced in 1998.
In the second quarter of 2005, Time Warner took a $3 billion charge as part of a settlement for an unrelated class action lawsuit concerning alleged revenue discrepancies at its America Online division.
In a statement released Feb. 6, Time Warner said that its cable division "released only the limited, non-financial information that is allowed by law, and did nothing wrong." The company added that "it made business sense...to settle this class action lawsuit and in a manner that would benefit our customers."[/FONT]
[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]
[FONT=Arial, Helvetica, sans-serif]FEBRUARY 06, 2006 -
[/FONT][FONT=Arial, Helvetica, sans-serif]Time Warner Cable subscribers may be eligible for free service in the wake of a proposed settlement of a class action lawsuit.
The lawsuit claims that between Jan. 1, 1994 and Dec. 31, 1998, Time Warner sold the names of subscribers to direct marketers, in violation of the Cable Act of 1984.
Under the terms of a recently devised provisional settlement––a hearing is scheduled for May 19 in the U.S. District Court for the Eastern District of New York in Brooklyn––subscribers whose information may have been sold can receive one free month of any Time Warner Cable service they don’t already have or two free movies on demand. Those who are no longer Time Warner subscribers can be reconnected for free, and will receive one complimentary month of any Time Warner Cable service, with the exception of movies on demand.
While the potential number of claimants is nearly 12 million, a document filed with the U.S Court of Appeals in September 2002 indicates that the plaintiffs did not “actually seek to certify a class of all 12 million subs.” An attorney for the two subscribers who brought the suit, Andrew Parker and Eric DeBrauwere, told the court “there is simply no number because we have had no discovery as to the number of people who have actually been injured. We think it is a large number. We have no idea of whether it’s 13 million or 1 million or 1,000.”
Time Warner does not admit to any wrongdoing in the matter. It is unlikely that the company will appeal should the court uphold the provisional settlement, as the settlement releases Time Warner from liability.
Claims must be posted by May 4, 2006.
One legal observer estimates that the litigation has cost Time Warner nearly $5 million in billable hours since the lawsuit was introduced in 1998.
In the second quarter of 2005, Time Warner took a $3 billion charge as part of a settlement for an unrelated class action lawsuit concerning alleged revenue discrepancies at its America Online division.
In a statement released Feb. 6, Time Warner said that its cable division "released only the limited, non-financial information that is allowed by law, and did nothing wrong." The company added that "it made business sense...to settle this class action lawsuit and in a manner that would benefit our customers."[/FONT]
