Lawsuit Accuses Cingular of Deceiving

Elena
07 Jul, 2006
New York City

A federal lawsuit alleges breach of contract and violations of consumer protection laws, seeking class-action status on behalf of the more than 20 million customers AT&T Wireless had at the time of the merger. The lawsuit, based on complaints received by the Foundation for Taxpayer and Consumer Rights in Santa Monica, seeks up to treble damages for fees and charges paid by the AT&T Wireless customers.

[R]8:00AM Cingular was accused of deceiving customers.[/R]
Cingular acquired AT&T Wireless Services Inc. for $41 billion in October 2004, and promised that the customers of both companies would see uninterrupted and even improved service as a result of the ‘combined network’, but instead it degraded their reception in an effort to persuade them to sign new contracts. A federal lawsuit alleges breach of contract and violations of consumer protection laws, seeking class-action status on behalf of the more than 20 million customers AT&T Wireless had at the time of the merger. The lawsuit, based on complaints received by the Foundation for Taxpayer and Consumer Rights in Santa Monica, seeks up to treble damages for fees and charges paid by the AT&T Wireless customers.

Cingular spokesman said that the company had not had a chance to review the lawsuit. He also said that the company eventually plans to dispose of the older cell phone technology used by the AT&T Wireless network, called TDMA, but insisted that it is still maintaining that system for now. The majority of Cingular''s nearly 56 million customers use a newer GSM system, and many companies no longer make TDMA-compatible phones. Cingular spent $6.5 billion on network improvements and integration in 2005, and has spent the same amount this year, Owen said.


[R]7:30AM Asia closes broadly higher on receding N.Korea jitters.[/R]
Asian markets closed mostly higher. Japan''s Nikkei 225 settled at 15307.61, down 0.09%, after giving back morning gains. Auto makers reported some of the best gains in Japan, with Toyota Motor climbing 1.5% and Honda Motor advancing 1.1%. Electronics exporters were mixed. Sony shed 0.4%, while Toshiba added 0.3%. Hong Kong''s Hang Seng Index closed 0.11% down at 16459.78, and South Korea''s Kospi index ended with a 0.79% gain. In Hong Kong, metal stocks were in demand, with Jiangxi Copper up 3.4% and aluminum producer Chalco up 1.7%. Phone company PCCW advanced 0.9% after local news media said that a Hong Kong consortium may bid for its telecom and media assets. Bank stocks outperformed the market after Citigroup reported that Hong Kong banks'' strong fundamentals weren''t fully reflected in their valuations. HSBC Holdings gained 0.4%.Australia''s S&P/ASX 200 advanced 0.29% at 5135.30 and Indonesia''s Jakarta Composite settled 0.59% higher at 1347.90. China''s Shanghai Composite slipped 0.14% and Singapore''s Straits Times Index was down 0.12% at 2445.13, while Taiwan''s Weighted index edged up 0.02% at 6660.61.


[R]6:15AM European stocks trade lower due to tech shares and U.S. payrolls report.[/R]
European markets traded lower in mid-morning session. The U.K. FTSE 100 index lost 0.4% at 5,868, the German DAX Xetra 30 index decreased 0.5% at 5,666 and the French CAC-40 index slipped 0.5% at 4,940. Chip makers Infineon Technologies lost 0.6% and STMicroelectronics weakened 1.7% after U.S. company Advanced Micro Devices Inc. late Thursday cut its second-quarter revenue guidance after posting lower sales of entry-level and mainstream mobile and desktop processors. Software maker Business Objects fell more than 27% in Paris after it revised its second-quarter earnings and revenue guidance lower after posting lower-than-expected license revenue. The airline sector provided some respite, as budget airline operator easyJet advanced 7.2% following its statement that it carried 15.6% more passengers in June than a year ago. The company also raised its profit growth guidance for the year. Also in the sector, Ryanair gained 2.3% and Air France-KLM increased 0.5% after it said that passenger numbers advanced 5.9% to 6.6 million in June.

Oil prices dropped below $75 a barrel Friday after a U.S. weekly petroleum supply snapshot showed an unexpected rise in domestic gasoline stocks. Light, sweet crude oil for August delivery shed 34 cents to $74.80 a barrel. Gold opened Friday at a bid price of $631.10 a troy ounce, up from $629.30 late Thursday. The euro was unchanged against the U.S. dollar on Friday after the European Central Bank''s president promised strict measures to curb inflation. The European currency was at $1.2774 in morning trading, unchanged from its level the night before in New York. The British pound gained after the Bank of England kept its own interest rate unchanged for the 11th consecutive month, rising to $1.8377 from $1.8367 the night before. The dollar also slipped against the Japanese currency, dropping to 115.01 yen from 115.15 yen.