Three
consumers, yesterday, filed an amended complaint in a nationwide
class
action lawsuit against Apple and AT&T for fraud in connection
with the
sale and marketing of the iPad and associated data plans.
The complaint charges that Apple and AT&T misrepresented that
consumers
purchasing an iPad with 3G capability, which cost $130 more than
an iPad
without 3G capability, could choose an unlimited data plan for a
fixed
monthly rate and could switch in and out of the unlimited plan on a
monthly basis as they wished.
Less than six weeks after its
introduction
to the U.S. market, AT&T and Apple have discontinued their
unlimited
data plan for any iPad 3G customers not currently enrolled and
prohibited current unlimited data plan customers from switching
back and
forth from a less expensive, limited data plan or no data plan to
the
unlimited plan.
"The availability of an unlimited data plan was a key reason why
consumers paid the extra $130 charge to access the 3-G network,
and
their ability to switch in and out of the unlimited data plan was
also
an important consideration in the decision to purchase an iPad," stated
Lieff Cabraser attorneyMichael W. Sobol "The complaint alleges that Apple
and
AT&T
should have known at the time they were promoting the availability
of
unlimited data plans, they were not going to keep that promise."
"I originally purchased a standard iPad. Three weeks later, I
returned
it to the Apple store, paying an additional $130 plus sales tax to
upgrade to an iPad with 3G capability. I thought the iPad 3G was
worth
the additional money because, with the unlimited data plan, I
could work
outside my office or home and access all the data I needed for a
fixed,
monthly price," commented plaintiff Adam Weisblatt of Fulton, New
York.
"But I also knew that for several months each year, with my
schedule, a
lesser expensive, limited data plan was sufficient. I would have
never
purchased a 3G-capable iPad if I knew Apple and AT&T were
planning on
suddenly taking away from me the freedom to opt in and out of an
unlimited data plan at my choice."
Factual Allegations in the
Complaint
As of June 7, 2010, Apple and AT&T decided to discontinue the
"unlimited
data" plan they had heavily advertised in connection with their
sales of
the 3G-enabled iPads. Apple and AT&T had promised consumers
flexibility
with their data plans, allowing them the ability switch back and
forth
between the limited data plan, the unlimited data plan, and no
data plan.
The complaint alleges that iPad purchasers who initially opted for
the
limited data plan have been stripped of their ability to later opt
for
the unlimited data plan. Even those customers currently signed up
for
the unlimited data plan cannot switch to a limited plan and then
later
opt for the unlimited plan, as was originally promised. Apple and
AT&T
announced this policy change with less than one week's notice to
their
customers and only about a month after Apple and AT&T began
selling
3G-enabled iPads.
The complaint further alleges that consumers were convinced to opt
for
the more expensive 3G model, costing $130 more than a non-3G
model,
based on the advertised benefits of having an unlimited data plan
and
the freedom to continually switch in and out of that plan as their
demand for data changed.
The proposed class plaintiffs seek to represent a nationwide class
consisting of all individuals and entities within the United
States who
purchased or ordered an Apple iPad 3G on or before June 6, 2010.
Reporters who wish to receive a copy of the complaint are welcome
to
contact Lisa Cappelloni of Lieff Cabraser at lcappelloni@lchb.com or
(415) 956-1000.
iPad Consumers: Contact Plaintiffs'
Counsel
Consumers that would like to report their experiences with the
Apple
iPad and their AT&T unlimited data plan, or who wish to learn
more about
the class action lawsuit are welcome to contact an attorney at
Lieff
Cabraser by visiting http://www.lieffcabraser.com/consumer/ipad.php.
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