The AT&T hidden charges lawsuit ended in a $14 million settlement that received final court approval on November 8, 2022. The case, Vianu v. AT&T Mobility LLC, accused the carrier of quietly adding an “Administrative Fee” to California wireless bills on top of the monthly rate it advertised. Eligible customers received an estimated $15 to $29 each, with the court calculating a per-claimant value of roughly $17.25.1CaseMine. Vianu v. AT&T Mobility LLC
What the Administrative Fee Was
AT&T introduced the fee in 2013 at 61 cents per line per month for postpaid wireless customers. By 2018 it had climbed to $1.99 per line.2Ars Technica. AT&T Sued Over Hidden Fee That Raises Mobile Prices Above Advertised Rate The charge did not appear inside the flat rate AT&T advertised. It showed up in the “Surcharges & Fees” section of the bill, alongside government-mandated taxes and regulatory pass-through charges. The lawsuit argued that placement made the fee look like a required government charge when it was actually AT&T’s own revenue.
The dollars added up quickly. A 2018 analysis by BTIG analyst Walter Piecyk estimated the jump from 76 cents to $1.99 per line would produce roughly $800 million in additional annual revenue, given that at least 85 percent of AT&T’s 64.5 million postpaid phone lines were subject to the fee.3MarketWatch. What’s Behind AT&T’s $800 Million Administrative Fee Increase AT&T’s own records showed the average affected customer had paid about $180 in total administrative fees since 2015.4The Verge. AT&T Vianu Lawsuit Class Action Administrative Fee
Who Was Covered and What They Received
The settlement class included California consumers with a postpaid wireless plan through a consumer or individual responsibility account who were charged the Administrative Fee between June 20, 2015, and June 16, 2022. Corporate accounts where an employer paid the bill were excluded. AT&T’s records identified 5,647,781 wireless accounts within that definition.5Bloomberg Law. AT&T To Pay $14 Million To End Bait and Switch Class Action
The $14 million common fund was non-reversionary, so unclaimed money did not return to AT&T. After deductions for attorneys’ fees of up to $3.5 million and administration costs of about $813,000, individual payments were estimated at $15 to $29.6Angeion Group (Settlement Notice). Vianu v. AT&T Mobility LLC Long Form Notice Current customers received automatic account credits. Former customers received checks in the mail.7Classaction.org. Vianu et al. v. AT&T Mobility LLC Preliminary Approval Motion The claims deadline was October 29, 2022, and has now passed.8Top Class Actions. AT&T Administrative Fees $14M Class Action Settlement
What the Lawsuit Alleged
Named plaintiffs Ian Vianu and Irina Bukchin filed the complaint in the U.S. District Court for the Northern District of California, Case No. 3:19-cv-03602.9Top Class Actions. AT&T Can’t Dodge Bait and Switch Pricing Class Action They described a “bait and switch”: AT&T advertised one monthly price and then charged more through an undisclosed fee. The claims rested on California’s Consumer Legal Remedies Act, Unfair Competition Law, and False Advertising Law.5Bloomberg Law. AT&T To Pay $14 Million To End Bait and Switch Class Action
AT&T called the lawsuit “wrong” and said the fee was “a standard fee” properly disclosed to customers, pointing to an explanation on its website.2Ars Technica. AT&T Sued Over Hidden Fee That Raises Mobile Prices Above Advertised Rate The plaintiffs replied that a description buried deep on the site did not cure the fee’s absence from the advertised rate.
How the Court Ruled Before Settlement
Magistrate Judge Laurel Beeler denied AT&T’s motion to dismiss in June 2020. She rejected the argument that current AT&T customers lacked standing because they had not canceled service, writing that “it seems a funny position to require the plaintiffs to break their contract to challenge unfair practices about fees for their services.”10Lieff Cabraser Heimann & Bernstein LLP. Plaintiffs Defeat Motion to Dismiss AT&T Hidden Monthly Billing Fees Class Action She also found the plaintiffs had adequately alleged that AT&T “deceptively and unfairly disclosed” the fee “as a pass-through cost,” and refused to enforce a contract clause that would have barred customers from disputing charges older than 100 days, ruling AT&T could not use it because it had “masqueraded” the fee. On timing, each new monthly bill triggered a fresh statute of limitations period of three to four years.
The parties reached agreement before class certification was decided. AT&T had filed a renewed motion to compel arbitration after the U.S. Supreme Court’s 2022 decision in Viking River Cruises, Inc. v. Moriana, which threatened one of the plaintiffs’ key defenses against arbitration.1CaseMine. Vianu v. AT&T Mobility LLC That unresolved risk shaped what the plaintiffs were willing to accept.
Objections to the Deal
Two class members objected. Jennifer Wilson argued the recovery was so small it was “the equivalent of nothing.” Eric Hughes objected that the settlement contained no injunctive relief forcing AT&T to change how it discloses or charges the fee, and that the release-and-waiver terms were too broad.1CaseMine. Vianu v. AT&T Mobility LLC
Judge Beeler overruled both. She found the $17.25 per-claimant figure represented meaningful value given the litigation risks, particularly the arbitration fight and the fact that no class had yet been certified outside the settlement. She noted the release was limited to claims tied to the complaint and did not cover AT&T’s future conduct. AT&T did not admit wrongdoing.8Top Class Actions. AT&T Administrative Fees $14M Class Action Settlement
Did AT&T Stop Charging the Fee?
No. The settlement did not require AT&T to end or change the fee, and the company continued to charge it. AT&T’s current wireless schedule lists an “AT&T Administrative & Regulatory Cost Recovery Fee” of $3.99 per line per month for consumer customers, roughly double the $1.99 rate that prompted the lawsuit. Business customers face a separate administrative fee of up to $2.49 per line plus a regulatory cost recovery fee of up to $1.50 per line. An administrative and regulatory fee of $2.63 per service payment is scheduled to take effect for prepaid customers on June 22, 2026.11AT&T. AT&T Wireless Other Fee Schedule AT&T’s terms reserve the right to raise fees or add new ones.
Similar Cases Against Other Carriers
Verizon reached a $100 million settlement over its own undisclosed “administrative charge,” approved in late 2023. That deal covered Verizon postpaid customers with accounts from January 2016 through November 2023.12ABC11. Class Action Lawsuit Verizon Wireless Settlement Verizon’s fee had started at 40 cents per line in 2005 and reached $3.30 per line by 2022.13Classaction.org. Bait and Switch Class Action Alleges Verizon Hides Monthly Administrative Charge The broader practice of listing administrative and regulatory fees as separate line items outside advertised prices continues across the industry.