Lawsuit Accuses AT&T of iPhone and iPad Overcharges

AT&T Mobility is being sued for systematically overcharging its iPhone and iPad customers for data transactions, small charges the suit alleges amounts to millions of dollars in revenue for the wireless carrier.

"AT&T's billing system for iPhone and iPad data transactions is like a rigged gas pump that charges for a full gallon when it pumps only nine-tenths of a gallon into your car's tank," the suit alleged. "AT&T's bills systematically overstate the amount of data used on each data transaction involving an iPhone or iPad account."

According to the federal class-action suit, an independent consulting firm hired by plaintiff Patrick Hendricks' counsel conducted a two-month study of AT&T's data usage billing practices, and discovered the carrier systematically overstated web server traffic by 7% to 14% -- and in some cases by more than 300%