California Governments Go After Wireless Companies for Overcharges

More than three dozen California governmental entities, including the counties of Los Angeles and Sacramento, have filed suit against four leading wireless companies for allegedly overcharging government customers by more than $100 million.

According to the plaintiffs, AT&T, Sprint, Verizon and T-Mobile ignored two cost-saving contractual obligations which would have ensured the lowest available price for services for California state and local government customers. Had this requirement been met, the customers could have saved 20 to 30 percent on their plans over the term of the contract, the plaintiffs said.

Representatives for the companies have not commented on the lawsuit.

Read more about the suit here.

Image Credit: Flickr User amtokyo, (CC BY-SA 2.0)