WorldCom settles overcharging lawsuit

WorldCom is set to resolve a long-running lawsuit by paying out $88m to US subscribers who claim they were overcharged for its services.

Users who thought they were paying cheap subscriber rates for long distance calls, were actually charged much higher "non-subscriber" rates. Girard & Green, lawyers acting for the plaintiffs claim that this violates a US law obliging telephony companies to clearly describe how they charge for their services. They are seeking redress for the excess charges paid, plus additional administrative and legal costs. Up to five million people could be affected. WorldCom, known as MCI Worldcom during the time in dispute, denies any liability or wrongdoing, but the company has agreed to the settlement that will not become effective until final approval is granted by a US court, expected for 29 March.