Federal Judge Rejects $15.5 Million Settlement of Comcast Set-top Box Litigation

A federal judge rejected a proposed $15.5 million settlement in a class-action lawsuit against Comcast, saying it lacks "a reliable and administratively feasible mechanism" for figuring out who falls within the class definition. U.S. District Judge Anita Brody in Philadelphia Thursday denied a Comcast motion for certification of a settlement class and preliminary approval of class-action settlement. Comcast lacks records for most former subscribers, including any before 2010, and it needs a better model for screening out people who don't belong in the class than the one proposed, Brody said in her order. The multidistrict litigation is a combination of 24 civil actions against Comcast consolidated in 2009 and alleging the cable company wrongfully tied subscribing to its Premium Cable tier to rental of a Comcast set-top box. The proposed settlement would include all people who lived in and subscribed to Premium Cable in California, Washington or West Virginia in the class period or who subscribed to Premium Cable in any state during the class period and opted out of Comcast's arbitration clause and who paid Comcast a set-top box rental fee. The class period is Jan. 1, 2005, up to the point of the court's giving preliminary approval to a settlement agreement. While Comcast's proposed settlement includes a variety of ways for determining whether former subscribers fall within the class definition, such as use of canceled checks or old bills or credit card receipts, Brody said it was "implausible" that such evidence would show a person was both a Premium subscriber and had rented a set-top box. And relying on sworn statements alone has been previously rejected in a 3rd U.S. Circuit Court of Appeals decision, Brody said. Comcast didn't comment Friday.