AOL to pay up to $25 million in legal settlement

AOL will pay up to $25 million to settle a class-action lawsuit brought against it by a group that accused the company of "wrongfully billing" customers.

AOL has agreed to settle the case but denies the allegations.

The Dulles, Va.-based media company allegedly billed consumers for online services and products, such as additional AOL accounts or desk calendars, that they didn't order. AOL is also accused of charging for services and goods orders that customers had tried to cancel.

Under the settlement terms, AOL could pay $25 million in compensation and be forced to give AOL account credits, as well as forgive amounts owed for unauthorized charges.

"AOL denies the allegations contained in the original lawsuit," AOL representative Nicholas Graham, said in a statement. "The settlement announced today consolidates and resolves a series of cases that have been pending for several years...We've defended the cases accordingly."

Next month, a circuit court judge in St. Clair County, Ill., will decide whether to approve the settlement.

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About the author

Greg Sandoval covers media and digital entertainment for CNET News. Based in New York, Sandoval is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at @sandoCNET.

 

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