Investigation Concerning BellSouth Out-of-Area Telephone Concession
Cohen Milstein Sellers & Toll PLLC is currently investigating whether the BellSouth Telephone Concession promised to employees after they retire or provided to retirees living outside of an area served by BellSouth ("Out-of-Area Telephone Concession") constitutes a defined benefit pension plan under the Employee Retirement Income Security Act ("ERISA"), the federal law which protects employee benefits. This potential lawsuit would seek a determination that the Out-of-Service Area Telephone Concession must comply with ERISA and most importantly protect the benefits promised to any included employees and retirees – in other words that BellSouth (now AT&T) cannot cut, reduce or eliminate those benefits.
While in the past (prior to the merger with AT&T), BellSouth has stated that it intended to continue Telephone Concession, AT&T and BellSouth have recently announced a merger. In the words of AT&T Chairman Ed Whitacre, "AT&T, BellSouth and Cingular are now one company." After the merger, all decisions regarding BellSouth benefits will then be made by AT&T. As alleged in the Complaint against SBC concerning the Out-of-Area Telephone Concession provided to SBC employees, SBC/AT&T’s Chairman Ed Whitacre personally approved the reduction and elimination of the Out-of-Service Area Telephone Concession for SBC retirees.
For almost the past two years, Cohen Milstein has been pursing litigation against SBC Communications (now AT&T, Inc.) arising out of its reduction and eventual termination of the Out-of-Service Area Telephone Concession (a.k.a. "OOR Telephone Concession) previously promised and provided to SBC employees. In that lawsuit, Cohen Milstein has successfully defeated SBC’s motion to dismiss which argued that the Telephone Concession was not a pension plan and has successfully obtained certification of a class of affected retirees, employees and their beneficiaries. For more information about this ongoing lawsuit, click here. This current certified class action does not explicitly include BellSouth employees or retirees.
Regardless of the fact that SBC/AT&T has not yet announced plans to reduce and/or terminate Telephone Concession for BellSouth employees or retirees, you may be eligible to take action to protect your right to receive this benefit in the future. If you fall into one of the following categories of employees or retirees, you may want to contact us regarding your rights concerning Retiree Telephone Concession:
1. Retirees from BellSouth who are currently receiving an Out-of-Area Telephone Concession (i.e. receiving reimbursement for telephone service from a company other than BellSouth); OR
2. Current employees of BellSouth who either (a) are currently receiving an Out-of-Service Area Concession as active employees or (b) would be eligible to receive an Out-of-Service Area Concession after they retire; OR
3. Former employees of BellSouth with more than 5 years of service and who received Telephone Concession while they were active employees of BellSouth; OR
4. Retirees who are currently receiving an In-Service Area Telephone Concession (i.e. telephone service is provided by BellSouth), but who would be eligible to receive an Out-of-Service Area Telephone Concession if they lived outside the BellSouth Service Area.
If you are a current, former or retired employee who fall into one of those categories, or you have information which might assist us in the prosecution of these allegations, please contact one of the following persons:
R. Joseph Barton, Esq. jbarton@cohenmilstein.com
Abby Scott, Paralegal. ascott@cohenmilstiein.com
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W., Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 or 202-408-4600
The law firm of Cohen Milstein is a nationally recognized plaintiffs' class action law firm and has significant experience in representing employees injured by corporate misconduct. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein ERISA practice is headed by Marc I. Machiz, formerly the Department of Labor's chief ERISA lawyer.
