The Canadian Press) The Supreme Court of Canada has set the stage for a $19 billion class action lawsuit to proceed against the country's biggest cellphone companies.
In a ruling released Thursday, the Supreme Court said it would not hear an appeal by the phone companies that were attempting to have the class action suit dismissed. But it gave no reason for its decision not to hear the appeal.
(Bell) BCE Inc. (TSX:T.BCE, Stock Forum), Rogers Communications Inc. (NYSE:RCI, Stock Forum) and Telus Corp. (NYSE:TU, Stock Forum) are named as defendants, along with a number of smaller players.
The suit was launched in 2004 and was first certified by a Saskatchewan court in 2007.
It alleges that Canadians have been misled by the carriers into thinking the access fee was a tax by the government or the Canadian Radio-television and Telecommunications Commission, when in fact it was simply extra revenue for cellphone companies.
The suit was filed on behalf of more than 14 million monthly cellphone subscribers, or nearly half the country's population, and seeks the return of an estimated $12 billion, plus interest charges. That would result in a total claim of about $19 billion, or about $600 to $700 per customer.
Many companies have since phased out system access fees. But the suit is seeking damages to compensate customers for paying those access fees many years ago.