Verizon Wireless loses appeal on cellphone charges

A federal appeals court on Friday threw out a ruling requiring Verizon Wireless customers to resolve disputes over alleged fraudulent cell phone charges individually through arbitration rather than as a class.

The ruling, by the U.S. Third Circuit Court of Appeals in Philadelphia, is a defeat for the largest U.S. mobile service provider, a joint venture of Verizon Communications Inc and Britain's Vodafone Group Plc. Lawyers for the plaintiffs and for Verizon Wireless either had no comment or were not immediately available for comment. Many consumer contracts require that disputes be arbitrated individually. Consumer advocates say this can unreasonably favor companies by making it prohibitively costly to arbitrate, especially small claims. In the Verizon Wireless case, plaintiffs Keith Litman and Robert Wachtel sought to sue on behalf of a class over the imposition of administrative charges on cellphone contracts.