Telecom/1996-04-telecom-walnutcreek.iso/legal-fcc/mci.class.action.lawsuit

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Date: Mon, 6 Mar 95 00:56:23 CST
From: [e-mail] (TELECOM Digest (Patrick Townson))
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To: telecom
Subject: Legal Notice: MCI Class Action Lawsuit Settlement


The following is a legal notice. It is intended for the persons described
in the lines in UPPER CASE below. If you are a person described in the UPPER
CASE lines below, then please read this notice carefully, as your rights may
be affected.  Before taking any action as a result of this notice, you
should show this notice to your attorney, and seek the advice of your
attorney regards an appropriate response.


               -------------------------------


IF YOU HAVE PAID FOR TELEPHONE CALLS TO 900 NUMBER PROGRAMS WHICH OFFERED
SWEEPSTAKES, GAMES OF CHANCE, AWARDS, 'FREE' PRIZES OR GIFTS, INFORMATION
ON UNCLAIMED FUNDS, FINANCIAL INFORMATION SERVICES, CREDIT CARDS, CATALOG
CARDS, OR INFORMATION ON OBTAINING CREDIT, SOMETIMES KNOWN AS 'CREDIT
REPAIR SERVICES', AND SUCH TELEPHONE CONNECTIONS WERE ESTABLISHED AND/OR
PROVIDED BY MCI, PLEASE READ THIS NOTICE CAREFULLY. IT MAY AFFECT YOUR
RIGHTS. SHOW THIS TO YOUR ATTORNEY AND SEEK YOUR ATTORNEY'S ADVICE.


In 1991 and 1992, two class action lawsuits were filed against MCI Tele-
communications, Inc. These are commonly known as the Andrews Action and
the Harper Action. They are identified in court records as:

         Andrews Action, Docket CV 191-175
         Harper Action,  Docket CV 192-134

both in the United States District Court for the Southern District of
Georgia, Augusta Division.

Summary of Notice of Pendency and Proposed Settlements of Class Actions
as to MCI Telecommunications, Inc. and Settlement Hearing.

Settlement Agreements have been reached between MCI Telecommunications,
Inc. (hereinafter MCI) and Plaintiffs in two class action lawsuits pending
against MCI. The lawsuit docket identification numbers are listed above.
In the Andrews lawsuit, it is alleged that MCI and other defendants who
are not participating in the proposed settlement violated federal racketeering
and communications laws by operating an illegal gambling business and
accepting wagers using 900 number programs offering sweepstakes, games of
chance, awards, 'free' prizes, gifts or information on unclaimed funds.

During the course of the Andrews litigation, the Plaintiff filed documents
with the Court which further alleges the defendant MCI and other defendants
committed racketeering by engaging in wire and mail fraud in connection
with these 900 number programs.

In the Harper lawsuit, plaintiff alleges that MCI and other defendants
who are not participating in the proposed settlement committed the offense
of racketeering by engaging in mail fraud and wire fraud in connection with
900 number programs offering financial information programs, credit
cards, credit repair, catalog cards, or information on how to obtain
credit cards and make adjustments to the record in credit reports.

MCI and the other defendants have expressly denied and continue to deny
all the allegations of the plaintiffs Harper and Andrews. The Court has
not yet ruled on the merits of the allegations or claims against the
defendants or the defenses given by any defendant.

The Court, for the purposes of settlement only, preliminarily certified
the following classes:

1) In Andrews, the Settlement Class consists of all persons who between
January 1, 1988 and November 1, 1994:

    a) paid for one or more telephone calls to 900 numbers where the
    900 number was maintained by MCI in connection with programs offering
    sweepstakes, wagering, games of chance, awards, free prizes, gifts
    or information on unclaimed funds; and

    b) did not receive a credit or refund of any kind from MCI and/or
    any other telephone company for each paid call.

2) In Harper, the Settlement Class consists of all persons who between
January 1, 1988 and November 1, 1994:

    a) paid for one or more telephone calls to 900 numbers where the
    900 number was maintained by MCI in connection with programs offering
    financial information services, credit cards, credit repair, catalog
    cards, or information on how to obtain credit cards, how to effect
    changes and/or adjustments in credit bureau reports; and,

    b) did not receive a credit or refund of any kind from MCI and/or
    any other telephone company for each paid call.

MCI, while completely denying liability, has agreed that a settlement
with the Andrews Settlement Class and the Harper Settlement Class is
is appropriate and fair. The Court has yet to rule on the fairness or
appropriateness of the settlement offer.

MCI has made available $43 million in long distance certificates (herein-
after, 'Certificates') to cover potential claims by members of the
Settlement Classes.  Persons who paid for sweepstakes-type 900 calls
and claim a loss occured to them may be eligible to claim Certificates
for long distance services up to a maximum of $40.00, net of any refunds
or credits previously paid by MCI and/or any other telephone company.

Persons who paid for credit card/credit information type 900 calls may
be eligible to claim Certificates for long distance service up to a
maximum of $50.00 net of any refunds or credits previously paid by MCI
and/or any other telephone company.  The Certificates are non-transferrable
and must be used exclusively toward charges for making future long distance
calls on MCI's network.

The Settlement Class(es) Member does not have to be an MCI customer to
use the Certificates. A universal, toll-free access number will be
provided for non-MCI customers who receive Certificates. MCI customers who
receive Certificates will be able to use them through normal and conventional
dialing procedures, commonly known as 'one plus'.

MCI reserves the right to investigate and challenge any claims submitted
and may use available data in its possession to verify the information
provided. Fraudulent claims presented to MCI will be at its option prose-
cuted by the Court.  In addition, $17 million is included in the amount of
the settlement for attorney fees and Court costs, including the fee of the
administrator employed by the Court to oversee the settlement process.

The proposed settlement with MCI does not include other defendants in the
litigation. It does not include any payments made for telephone calls to
900 numbers provided by AT&T, Sprint, or any other telephone company. It
does not affect any rights you may have in relation to calls made to such
900 numbers or the telephone company which provided the number or established
the connection.

AT&T and Sprint expressly are not participating in the proposed settlement
between MCI and the Plaintiffs.

In the event the Court detirmines that the proposed settlement with MCI
is fair, adequate and reasonable, a Proof of Claim form will be mailed to
all members of the Settlement Classes who request it.  The Proof of
Claim forms must be properly filled out and submitted in order for a
Settlement Class member to receive a Certificate. The Proof of Claim form
will require the Settlement Class member to provide the following inform-
ation:

   1) His or her name and current address;
   2) his or her current telephone number;
   3) the telephone number(s) used to place each call for which
      a claim is submitted;
   4) whether the telephone number was used to call 900 numbers
      offering sweepstakes-type programs and/or credit card/credit
      information type programs;
   5) the actual or estimated payment for such calls, less any
      credits or refunds given by any Plaintiff or telephone
      company;
   6) other identifying information about the member of the
      Settlement Classes the Court may require for its convenience
      in administering claims presented to it.

If the total amount of valid claims exceeds $43 million, the amount of
each class member's valid claim will be reduced on a pro-rated basis
among all the members of the Settlement Classes.  If the total amount
of valid claims is less than $43 million, the residue of Certificates
will be distributed to charitable organizations over a five year period.

If members of the Settlement Classes do not wish to remain a member for
purposes of the proposed settlement, they may exclude themselves from
one or both of the Settlement Classes by submitting a Request for
Exclusion in writing.  All Requests for Exclusion must be signed by or
or behalf of the class member requesting exclusion and must be sent by
mail postmarked no later than May 12, 1995 to the address given below.
By excluding yourself, you will not be entitled to share in any of
the settlement, should same be approved by the Court, but you will be
entitled to take actions of your own you deem proper and appropriate at
some later time against MCI and/or the other defendants.

Class members who wish to remain a member of one or both of these
Settlement Classes do not have to do anything. The interests of Settlement
Classes members are represented by Class Plaintiff's Counsel, whose name
is shown below.  If you remain a member of one or both Settlement Classes
then you are bound by the terms of any Final Judgment that may be
entered and will be deemed to have released MCI from all possible causes
of action related to these lawsuits.  You will not, however, be bound
in reference to the other non-participating defendants, and further action
against the non-participating defendants is still possible.

The Court will hold a hearing at the United States District Court for
the Southern Division of Georgia, Augusta Division, 985 Broad Street,
Augusta, Georgia 30901 on June 1, 1995 at 10:00 a.m. to detirmine whether
the proposed settlements of the Andrews and Harper class actions against
MCI should be approved as fair, adequate and reasonable and to detirmine
the amount of the attorney's fees and reimbursement of litigation costs
and expenses that should be awarded to Class Plaintiff's Counsel.

Any member of the Settlement Classes who has not submitted a Request For
Exclusion may object to the terms of the proposed settlements and to
the petition by Class Plaintiff's Counsel for attorney's fees and
reimbursement of litigation costs and expenses and may appear at the
Settlement Hearing.

In order to object, the class member must file a written objection with
the Court at the above address by May 12, 1995, with copies sent to
Class Plaintiff's Counsel and counsel for MCI at the addresses given
below. Any such objection or request to address the Court must state
each specific reason the proposed settlements should not be approved
and/or the specific reason the petitioning member of the class(es)
wishes to address the Court.  Legal support and citations should be
included with each specific request.

Contacts are:

Attornies for Class Plaintiffs:

Melvyn I. Weiss, Esq.                      John C. Bell, Esq.
Michael C. Spencer, Esq.       (or)        Pamela S. James, Esq.
Milberg Weiss Bershad Hynes & Lerach       Bell & James
One Pennsylvania Plaza                     619 Greene Street, Box 1547
New York, NY   10119           (or)        Augusta, GA  30901


Counsel for MCI:

John P. Wintrol, Esq.
Eugene I. Goldman, Esq.
McDermott, Will & Emery
1850 K Street N.W.
Washington, DC  20006


To register as a member of the Settlement Class(es) or to request a
Request for Exclusion, or for other information including a complete
copy of the terms of settlement which are expressed in summary above:

      Administrator
      900 Number Class Actions
      Post Office Box 1707
      Augusta, GA  30903

You may telephone the Administrator to request addition or exclusion from
the Settlement Class(es) if desired:   1-800-871-5409
but completed forms including your signature must be returned by mail.

ALL TELEPHONE AND WRITTEN INQUIRIES MUST BE SENT TO THE ABOVE ADDRESS
ONLY.   TELEPHONE [phone].

DO NOT telephone the Court or the Clerk of the Court.
DO NOT telephone the attornies for the Plaintiff Class or the Defendant.
DO NOT telephone MCI Telecommunications, Inc, its service representatives
       or the representatives of any other telephone company regards this
       matter.
DO NOT respond by electronic mail to the originator of this posting nor
       attempt to discuss this proceeding with the Court, the attornies
       or MCI through electronic mail.

ALL INQUIRIES must be addressed to the Administrator, and Requests for
Exclusion, or to address the Court if you choose to file one, must be
mailed to the Administrator with copies mailed to the attornies listed
above.


BY ORDER OF THE COURT,
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF GEORGIA
AUGUSTA DIVISION
985 Broad Street
Augusta, GA 30901

Dated: December 14, 1994

                 ------------------------------

If you are a member of the Settlement Class(es) described at the beginning
of this notice, you have been served notice by this publication of same.
Always consult your attorney for advice before proceeding in any legal
matter.  Show this notice to your attorney.