Law Firm Milberg Weiss Announces Class Action Lawsuit Against Gateway, Inc.
NEW YORK--(BUSINESS WIRE)--Oct. 11, 2000--The following is an announcement by the law firm of Milberg Weiss Bershad Hynes & Lerach LLP:
Milberg Weiss Announces a Consumer Fraud Class
Action Lawsuit Against Gateway, Inc.
Computer maker Gateway, Inc., (NYSE: GTW) is accused of misleading its customers by offering "free" Internet access without revealing that many would be charged long-distance telephone rates, automatically issuing credit cards charging an almost 27% interest rate, and refusing to accept returns from clients who were upset at discovering these facts, according to a class action lawsuit filed today by a client represented by the law firms of Milberg Weiss Bershad Hynes & Lerach LLP; and Almon, McAlister, Baccus Hall & Kelley, LLC.
The complaint charges that Gateway violated the California Consumer Legal Remedies Act and the California statute prohibiting fraudulent and unfair business practices and false and misleading advertising. In addition to these statutory causes of action, the complaint also alleges that Gateway violated the California common law pertaining to fraud and deceit, negligent misrepresentation, and intentional infliction of emotional distress. The action is pending in the Superior Court of the State of California, County of San Diego.
The complaint alleges that Gateway untruthfully advertised -- in written sales brochures sent to consumers who expressed interest in purchasing Gateway products -- that certain of its product packages included free Internet access for the first year. The offer was deceptive and fraudulent, the complaint alleges, because Gateway did not reveal that thousands of people would be charged long-distance connection fees under Gateway's purported "free" Internet access plan because Gateway did not provide local-access numbers. The Complaint alleges that these customers were deprived of the "free" Internet access advertised and offered by Gateway, and subscribed at their own expense with an Internet service provider, unwittingly paid long distance charges, or refrained from accessing the Internet.
The complaint further alleges that Gateway defrauded a separate class of consumers by automatically enrolling those who expressed interest in financing their purchases through Gateway in Gateway's "Moola MasterCard" plan which carried an Annual Percentage Rate of 26.99% (dubbed "competitive" in the brochure). The interest rate, the complaint alleges, was disclosed only after it was too late -- under Gateway's policy -- to return the goods for a refund.
Individuals who bought Gateway products using a "Moola MasterCard," and/or those who bought Gateway packages offering a free one-year Internet connection and could only access the Internet -- under Gateway's plan -- through a long-distance connection may be a part of one, or both of the classes that this lawsuit seeks to represent. This lawsuit seeks to enjoin Gateway from continuing its allegedly deceptive practices and to cease collection activities against members of the classes. The lawsuit also seeks disgorgement of Gateway's allegedly ill-gotten gains, and the award of monetary compensation to class members for injuries suffered as a result of Gateway's alleged wrongdoing.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com), a 160-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Seattle, and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $30 billion in aggregate recoveries.
Persons who wish to discuss this action, or have any questions concerning this news release or their rights and interests with regard to the case, may contact the following attorneys:
Steven G. Schulman or Salvatore J. Graziano Milberg Weiss Bershad Hynes & Lerach LLP One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Media Contact: David Rosenstein Email: Gatewaycase@milbergNY.com
-(or)- G. Rick Hall Almon, McAlister, Baccus Hall & Kelley L.L.C. P.O. Box 148 Tuscumbia, AL 35674 Tel: (256) 383-4448
CONTACT:
Milberg Weiss Bershad Hynes & Lerach LLP
Steven G. Schulman or Salvatore J. Graziano
800/320-5081
Gatewaycase@milbergNY.com
Media Contact:
David Rosenstein
800/320-5081
or
Almon, McAlister, Baccus Hall & Kelley L.L.C.
G. Rick Hall
256/383-4448
TICKERS: NYSE:GTW
KEYWORD: NEW YORK
BW3010 OCT 11,2000
16:30 PACIFIC
19:30 EASTERN |
