Susman Godfrey Vindicates Class Arbitrations

HOUSTON (April 20, 2006) - On April 20, 2006, the U.S. Court of Appeals for the First Circuit struck down a class action ban on the ground that it would deprive plaintiffs of the ability to effectuate their statutory rights under federal antitrust law. Kristian v. Comcast Corp., 2006 WL 1028758 (1st Cir. Apr. 20, 2006). Comcast, the largest cable operator in the U.S., included the ban on class actions in an arbitration clause that it contended applied to cable subscribers in metropolitan Boston. The Court of Appeals pointed to evidence that the ban deprived subscribers of any practical means of recovering overcharges resulting from Comcast's alleged antitrust violations. The Court also invalidated provisions that prohibited treble damages and attorneys' fees, both of which federal antitrust law entitles prevailing plaintiffs to recover. Susman Godfrey partner Barry Barnett, a co-lead counsel for the Kristian v. Comcast Corp. plaintiffs, said that "Kristian vindicates years of effort to counteract attempts by corporations to make consumer lawsuits uneconomic. Over the last decade, companies have used one-sided contracts to make it all but impossible for customers to recoup billions of dollars in overcharges. Earlier attempts to invalidate oppressive contracts have fallen short, but this time we went all-out and won a decisive victory for consumers." Susman Godfrey partner John Turner also represents the Kristian plaintiffs. Alan Gilbert, David Woodward, and Jessica Servais of Heins Mills & Olson in Minneapolis serve as co-lead counsel in the case. Messrs. Barnett and Turner work in Susman Godfrey's Dallas office. The firm also has offices in Houston, Los Angeles, and Seattle and plans to start a New York office in September 2006. A similar case on behalf of cable subscribers in metropolitan Chicago and Philadelphia remains pending in the U.S. District Court for the Eastern District of Pennsylvania before The Honorable John R. Padova. Susman Godfrey and Heins Mills & Olson also serve as co-lead counsel in the Pennsylvania case. News Contact: Amy E. Tinsley Email: atinsley@susmangodfrey.com Phone: 713-653-7871