Locus Telecommunications Agrees to Settlement in Phone Card Class Action Suit

Locus Telecommunications, Inc. announced last week that they had agreed to a settlement in a national class action settlement suit brought against them in New Jersey Court. In the lawsuit, plaintiffs alleged that Locus distributed or sold prepaid and rechargeable calling cards without fully disclosing the applicable rates and charges associated with those cards. While Locus did not admit to any wrong doings, they did agree to settle this claim.

Locus agreed to provide $3,663,520 of replacement pins to eligible consumers in the form of a replacement pin with a value of $0.50 each ($0.10 a minute to US and $0.25 a minute to certain international destinations). For each $5 card purchased, consumers are entitled to 1 $0.50 pin. The kicker here is that the customer must have their original pin in order to claim more than 1 replacement pin. Customers wishing to receive the replacement pin(s), must make a request within 6 months from the date of the settlement and can do so by visiting the following web site.

In addition to the replacement pins, Locus agreed to donate $300,000 to charity and agreed to use another $200,000 in product discounts in the upcoming months. IDT had a similar suit which they settled in much the same way a few years back.