AT&T Suffers Another Blow In Court Over Throttling of ‘Unlimited’ Data

An anonymous reader quotes a report from Ars Technica: A federal judge has revived a lawsuit that angry customers filed against AT&T over the company’s throttling of unlimited mobile data plans. The decision comes two years after the same judge decided that customers could only have their complaints heard individually in arbitration instead of in a class-action lawsuit. The 2016 ruling in AT&T’s favor was affirmed by a federal appeals court. But the customers subsequently filed a motion to reconsider the arbitration decision, saying that an April 2017 decision by the California Supreme Court “constitutes a change in law occurring after the Courts arbitration order,” Judge Edward Chen of U.S. District Court for the Northern District of California said in the new ruling issued last week. The state Supreme Court “held that an arbitration agreement that waives the right to seek the statutory remedy of public injunctive relief in any forum is contrary to California public policy and therefore unenforceable,” Chen wrote.

AT&T argued that the court shouldn’t consider the new argument, saying that plaintiffs raised it too late. The plaintiffs could have made the same argument before the April 2017 Supreme Court ruling, since the ruling was based on California laws that “were enacted decades ago,” according to AT&T. Chen was not persuaded, noting that “there had been no favorable court rulings” the plaintiffs could have cited earlier in the case. “The Court also finds that Plaintiffs acted with reasonable diligence once there was a ruling favorable to them,” Chen wrote. As a result, the plaintiffs can now proceed with their case in U.S. District Court against AT&T. However, AT&T will appeal Chen’s latest decision, presumably in the U.S. Court of Appeals for the Ninth Circuit.