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AOL agrees to settle 'wrongful billing' lawsuit

AOL has agreed to cough up as much as $25m to settle a class action lawsuit that alleged the giant ISP "wrongfully billed consumers".09 Jan 2006

By Tim Richardson for The Register

This story has been reproduced with permission

The agreement forms part of a proposed class action settlement reached by the Illinois state court after both sides in the case agreed to mediation conducted by a retired federal judge.

According to a statement issued Friday, the settlement covers claims that AOL "wrongfully billed consumers for online services, such as additional and 'spun-off' AOL accounts, and other services and products, such as AOL Desk Planner, without first receiving consumers' consent or authorization".

The agreement still needs court approval but if given the go-ahead could cost AOL up to $25m.

For its part, AOL "strenuously denies the plaintiffs' allegations, or that a class manageable for trial is certifiable".

However, the Time Warner-owned internet outfit agreed to settle the action "to avoid the burden and expense of litigation", said the statement.

© The Register 2006