VoIP-Pal Files Amended Complaint in Class Action Lawsuit, Expands Claims to Include RICO and Add Deutsche Telekom as a Defendant

Rhea-AI Summary

VoIP-Pal (OTCQB: VPLM) has filed an amended complaint in its Class Action lawsuit against major telecom providers, expanding its claims and adding new defendants. The updated filing introduces RICO claims and adds Deutsche Telekom (51.2% owner of T-Mobile US) as a defendant.

The lawsuit proposes a subscriber restitution framework that could provide eligible AT&T, Verizon, and T-Mobile customers with a $12 monthly discount on phone bills for up to five years, representing an estimated total value of $268.56 billion. The company is actively expanding its group of lead plaintiffs, aiming to secure over nine total representatives.

CEO Emil Malak expressed optimism about discussions with defendants and set a deadline of February 28, 2025, for progress in negotiations.

Positive

• Proposed subscriber restitution framework valued at $268.56 billion could generate significant settlement value
• Expansion of legal claims to include RICO allegations strengthens the lawsuit's position
• Addition of Deutsche Telekom as defendant broadens the scope of potential recovery

Negative

• Outcome of complex litigation against major telecom providers remains uncertain
• Extended timeline for legal proceedings could delay potential settlements
• No guarantee of successful negotiations by February 28, 2025 deadline

Amended Complaint Proposes Subscriber Restitution Fund and Structural Reforms

WACO, Texas, Jan. 29, 2025 (GLOBE NEWSWIRE) -- VoIP-Pal.com Inc. (“VoIP-Pal,” “Company”) (OTCQB: VPLM) has filed an amended complaint in its ongoing Class Action lawsuit (CIVIL ACTION NO. 1:24-cv-03054-RDM) against major telecommunications providers, including AT&T, Verizon, and T-Mobile. The amended filing expands the scope of claims and includes additional defendants, highlighting significant new allegations and proposed remedies.

Amended Complaint Highlights

• RICO Claims Added

The amended complaint introduces claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), alleging practices that the Company believes has harmed consumers and competition. These claims highlight concerns about market behavior that could potentially impact millions of American smartphone subscribers.

• Deutsche Telekom Added as a Defendant

Deutsche Telekom, the majority owner (51.2%) of T-Mobile US, has been added as a defendant. The amended complaint raises concerns regarding its potential involvement in practices that may limit market competition and negatively affect consumers.

• Proposed Subscriber Restitution Fund

The amended complaint outlines a proposed framework for subscriber restitution aimed at addressing the alleged harm. Preliminary details suggest:

• Potentially eligible subscribers served by AT&T, Verizon, and T-Mobile could receive a $12 monthly discount on their phone bills for up to five years.
• This framework reflects an estimated total value of $268.56 billion and is subject to further legal review and approval.

VoIP-Pal is currently one of the lead plaintiffs in this litigation and is actively expanding the group of lead plaintiffs to include additional representation. Interviews with prospective lead plaintiffs are ongoing, with the goal of securing over nine total lead plaintiffs to strengthen the case.

Emil Malak, Chairman and CEO of VoIP-Pal, said, "We are optimistic about continuing discussions with the defendants with the objective of achieving significant progress, and our hope is to begin negotiations soon. We are prepared to take the necessary steps if progress is not made by February 28, 2025. We appreciate the continued trust and support of our valued shareholders as we work toward delivering meaningful outcomes for consumers, promoting fair competition, and advancing innovation in the marketplace."

About VoIP-Pal.com Inc.

VoIP-Pal.com, Inc. (“VoIP-Pal”) is a publicly traded corporation (OTCQB: VPLM) headquartered in Waco, TX. The company owns a portfolio of patents related to Voice-over-Internet Protocol (“VoIP”) technology that it is actively seeking to monetize.

Forward-Looking Statements

This press release contains forward-looking statements as defined under securities laws. These statements reflect management’s current expectations and are inherently uncertain. Litigation outcomes and settlement discussions are unpredictable, and there is no assurance of favorable resolution.

For Further Information

Corporate Website: www.voip-pal.com
IR Inquiries: IR@voip-pal.com
IR Contact: Rich Inza, (954) 495-4600

FAQ

What is the estimated value of VoIP-Pal's proposed subscriber restitution framework?

The proposed subscriber restitution framework is estimated at $268.56 billion, offering eligible subscribers a $12 monthly discount on their phone bills for up to five years.

Why did VPLM add Deutsche Telekom as a defendant in the amended complaint?

Deutsche Telekom was added as a defendant due to its majority ownership (51.2%) of T-Mobile US and alleged involvement in practices that may limit market competition and affect consumers.

What new claims did VPLM add in its amended class action complaint?

VPLM added claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), alleging practices that allegedly harmed consumers and competition.

When is the deadline set by VPLM for progress in negotiations with defendants?

VPLM set February 28, 2025, as the deadline for making progress in negotiations with the defendants.

How many lead plaintiffs is VPLM seeking for its class action lawsuit?

VPLM is actively working to secure over nine total lead plaintiffs to strengthen the case.