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US D2C firms pay out $10m on mis-sold subs

Tim Green
US D2C firms pay out $10m on mis-sold subs

Ugly legacy of ringtone era rolls on.

Lawsuits against operators and content companies in the litigious US have been on-going and frequent, and serve as an embarrassing reminder of the excesses of the D2C personalisation market of the mid-noughties.

Yesterday, a group of firms agreed to settle a number of class action lawsuits that allege unauthorised charges for around $10 million.

They include Flycell, Glomobi, Mobilefunster, Thumbplay, WebAMG, Glispa and Motricity - although all deny any wrongdoing. A spokesperson for Thumbplay said the action had been taken to draw a line under the matter.

The settlement was approved in the Circuit Court of Cook County in Illinois, and is requiring the parties to set aside $9 million to pay for any potential claims and attorney fees of up to $1.85 million.

They also agreed to new terms around billing and refunds.

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Tags: us , d2c , litigation