WorldCom to pay $88 million in settlement

(Telephony) WorldCom has agreed to pay $88 million to settle a class action lawsuit alleging that the IXC overcharged customers as much as $3.42 per call.

According to the plaintiffs, the settlement results from improper charges made on customer accounts between February 5, 1996 and October 15, 2000. These customers were charged non-subscriber rates, even though they had signed up, or agreed to sign up for WorldCom long-distance. In many cases, said lawyers for the plaintiffs, customers were removed from WorldCom’s billing system without sufficient reason or notice.

“It was the decision of WorldCom to impose a different billing regimen on people who were dropped from WorldCom’s billing system,” said Daniel Girard, a partner with Girard and Green. “We believe [dropping customers] was an arbitrary action. People had no idea when they would be dropped from WorldCom’s system.”

The law firm, said Girard, is currently mailing notices to about 5.3 million class members throughout the U.S. who may have been overcharged by WorldCom. Those whose claims are verified will receive 150% of the amount they were overcharged. Customers whose claims cannot be verified but can certify under oath that they were overcharged during the period in question can receive $75.

According to Girard, the settlement contains no admission of guilt on WorldCom’s part. WorldCom officials could not be reached for comment.