$50 million Comcast settlement gives $15 credit to some customers
A federal judge in Philadelphia has given final approval to a $50 million settlement to an antitrust class action that pitted Comcast Corp. against plaintiffs' lawyers who were seeking $875 million.
A federal judge in Philadelphia has given final approval to a $50 million settlement to an antitrust class action that pitted Comcast Corp. against plaintiffs' lawyers who were seeking $875 million.
The pact will net customers a $15 credit on their bill or service upgrades worth $44, while plaintiffs' lawyers will get $15 million in fees and expenses.
About 800,000 Philadelphia-area Comcast subscribers in Pennsylvania will benefit in late 2015 or early 2016 from the settlement.
U.S. District Judge John R. Padova of the Eastern District of Pennsylvania agreed to the final settlement, which gives Comcast the green light to shell out $33.3 million for the service enhancements and distribute a $16.7 million cash fund for attorneys' fees and payout costs to subscribers who requested them.
"It must be remembered that a settlement is, by its nature, a compromise," the judge wrote in a 35-page ruling, released Tuesday. "Neither party can expect to receive a perfect outcome. Rather, each must consider the strengths and weaknesses of their litigation position, and determine what is an optimal outcome."
Comcast spokeswoman Jennifer Moyer said Friday, "We're pleased the court has approved the settlement reached at the end of last year that brings this long-running matter to closure."
Barry C. Barnett, one of the lead plaintiffs' attorneys, with the Susman Godfrey L.L.P. firm in Dallas, did not respond to an email or a phone call. Attorneys from more than 15 firms put about 61,000 hours into the litigation.
Comcast customers sued in 2003, claiming that Comcast and other cable providers swapped customers and cable systems to gain a monopoly that enabled Comcast to raise prices and limit viewer choices for about two million Philadelphia-area subscribers.
After years of litigation and some courtroom wins for the plaintiffs, the case seemed headed to a settlement favoring consumers. But the U.S. Supreme Court agreed to hear an appeal by Comcast, which argued that two million Comcast subscribers in 16 counties in the Philadelphia TV market could not collectively sue because there were too many variables to calculate economic harm.
In March 2013, the high court agreed with Comcast, in a 5-4 vote, with the conservatives led by Justice Antonin Scalia backing Comcast.
Legal experts thought the case was dead. But the plaintiffs' attorneys returned to Padova's court and narrowed the class of economically harmed Comcast customers to about 800,000 in five counties: Philadelphia, Bucks, Chester, Delaware, and Montgomery Counties. A settlement was reached for this class.
Philadelphia-area Comcast subscribers had to submit a claim for the $15 credit by July 10 via a website and can no longer request the credit. Subscribers who did not respond to the court-appointed administrator over the summer will be granted two free months of the Movie Channel as part of the final settlement.
215-854-5897
@bobfernandez1