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Locus Calling Card Customers May Claim Settlement Benefits
Monday v. Locus Telecommunications Settlement Reached
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ENGLEWOOD CLIFFS, NJ (December 12, 2008) Locus Telecommunications, Inc. has reached a settlement with plaintiffs in a nationwide class action lawsuit related to its sale of prepaid calling cards. In the lawsuit, plaintiffs alleged, among other things, that Locus distributed or sold prepaid and rechargeable calling cards without fully disclosing the applicable rates and charges associated with those cards to consumers. As part of the settlement, Locus denies any wrongdoing or liability. The parties agreed to the settlement to avoid further costs and uncertainties related to litigation.
The class action, Monday v. Locus Telecommunications, Inc., Civil Action No. 07-2659 (PGS), remains pending before the United States District Court for the District of New Jersey until the settlement agreement is given final approval by the Court. The settlement affects customers who purchased a Locus calling card in the United States at any time between January 1, 1997 and November 13, 2008. The settlement will provide refund PINs to those people who either submit a PIN number from an eligible Locus calling card, or submit a notarized, written statement declaring that they were the purchaser of an eligible Locus calling card. Locus agreed to provide refund PINs worth up to $3,663,520 to eligible consumers of Locus calling cards. Eligible consumers are entitled to a refund PIN with a value of $0.50 for domestic calls at $0.10 per minute and international calls to certain countries at $0.25 per minute. Eligible consumers of Locus rechargeable calling cards are entitled to a refund PIN with a value of $0.50 for domestic calls at $0.10 per minute for every $5.00 worth of calling time that was loaded onto the card when it was first purchased and charged. In addition, Locus has agreed to make additional cy pres relief to the class, including: (1) $300,000 or the equivalent dollar value of donations to charitable organizations such as educational scholarships and/or donations of calling cards; and (2) $200,000, or the equivalent dollar value, in prospective product discounts.
If the settlement receives final approval by the Court, members of the settlement class with PIN numbers can submit a claim by accessing Locus's interactive voice response telephone system by either calling a toll-free number (1-888-292-1832) or any Locus calling card access number or customer service number, or by accessing a link on Locus's website (http://www.locustelecom.com) or plaintiffs' counsel's website (http://www.freedweiss.com). They must then enter a PIN number from a Locus calling card that was purchased on or before November 13, 2008. Settlement class members without PIN numbers can submit a claim by mailing a notarized, written statement to "Locus Telecommunication, Inc. Claims Administrator, c/o The Garden City Group, Inc., P.O. Box 9314, Dublin, OH 43017-4214," declaring that they were the purchaser of an eligible Locus calling card. Members of the settlement class may be required to provide their names and addresses, and the name of the calling card associated with the PIN number. Locus will then determine whether the member of the settlement class is eligible for a refund based on confirmation of a legitimate PIN and remaining funds in the pool. If eligible, Locus will provide members of the settlement class with a refund PIN.
The plaintiffs in Monday v. Locus Telecommunications, Inc. are represented by Plaintiffs' Co-Lead Counsel, James Cecchi of Carella, Byrne, Bain, Gilfillan, Cecchi, Stewart & Olstein, and Paul M. Weiss of Freed & Weiss LLC and by other class counsel. Class members may contact Class Counsel at Info@FreedWeiss.com or (312) 220-0000. Locus is represented by Philip R. Sellinger and Peter J. Gallagher of Greenberg Traurig, LLP.
Source: Locus Telecommunications, Inc. (www.locus.net)
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