Class Actions -- 2002



Lucent's 3d Supp. to Petition for Declaratory Judgment   (FCC)

Preemption of state phone regulation

Although not technically an amicus brief, comments filed 7/29/02 by the NAM with the Federal Communications Commission support the position that that agency should tell a Madison County, Illinois, court to dismiss a class action suit that undermines its jurisdiction. The underlying suit claims that high rental charges for home telephones and inadequate notice of alternatives hurt consumers. But the FCC has already acted to deregulate home telephone equipment, and a state court suit constitutes an indirect and retroactive regulation of the type preempted by the FCC's action. Preemption of such suits is a fundamental tenet of constitutional law, and crucial to a rational national tort liability system.

The suit was settled in 2002, with the lawyers receiving $84.5 million in fees and expenses, the plaintiff class members receiving a total of $8.4 million in rebates, and some charities receving $50 million worth of free calling cards.