VoIP-Pal and Plaintiffs File Groundbreaking Antitrust Lawsuits Against AT&T, Verizon, T-Mobile, and Deutsche Telekom

Rhea-AI Summary

VoIP-Pal.com Inc. (OTCQB: VPLM) has filed an antitrust lawsuit against AT&T, Verizon, T-Mobile, and Deutsche Telekom in the U.S. District Court for the District of Columbia. A parallel class action lawsuit representing 373 million American smartphone subscribers has also been filed. Both lawsuits allege violations of Sherman Act Sections 1 and 2, and Clayton Act Sections 3, 4, and 7, accusing the telecom giants of anticompetitive practices.

VoIP-Pal and the class action plaintiffs have entered a third-party litigation funding agreement to cover legal fees and expenses. The cases aim to promote fairness and competition in the telecommunications market. This antitrust case is separate from VoIP-Pal's ongoing patent litigation in the Western District of Texas.

Positive

• VoIP-Pal is taking proactive legal action against major telecom companies, potentially leading to improved market competition
• The company has secured third-party litigation funding, reducing financial burden on VoIP-Pal
• The lawsuit's high-profile nature could increase visibility for VoIP-Pal in the telecom industry

Negative

• Legal proceedings can be lengthy and costly, potentially impacting VoIP-Pal's resources
• The outcome of the antitrust lawsuit is uncertain and could affect the company's future prospects
• VoIP-Pal's stock price ($.0128) is significantly lower than the defendants', indicating a substantial market cap difference

WACO, Texas, Aug. 21, 2024 (GLOBE NEWSWIRE) -- VoIP-Pal.com Inc. (“VoIP-Pal,” “Company”) (OTCQB: VPLM) has filed an antitrust lawsuit (Case No. 1:24-cv-02395) against telecommunications giants AT&T, Verizon, T-Mobile, and Deutsche Telekom in the United States District Court for the District of Columbia. A parallel and independent class action lawsuit (Case No. 1:24-cv-02397) representing 373 million American smartphone subscribers has also been filed against the same defendants.

Both lawsuits allege violations of key sections of U.S. antitrust law: Sherman Act Sections 1 and 2, and Clayton Act Sections 3, 4, and 7. These filings accuse the telecom giants of engaging in anticompetitive practices that restrict competition and harm consumers.

“This lawsuit represents an important step in our effort to promote fairness and competition in the telecommunications market,” said VoIP-Pal CEO Emil Malak. “We believe these companies have used their market position to limit choices and increase costs for consumers. Our goal is to challenge these practices and help ensure a more equitable market for everyone. We are not going anywhere! Patience is a virtue.”

The legal actions have been filed in the U.S. District Court for the District of Columbia, the same venue that presided over landmark antitrust cases like United States v. Microsoft Corp. and the recently decided United States v. Google LLC. The Google and Microsoft cases addressed violations under Sherman Act Sections 1 and 2, focusing on market dominance and exclusionary practices. Similarly, the VoIP-Pal and class action lawsuits also cite Sherman Act Sections 1 and 2 but go further by alleging additional violations under Clayton Act Sections 3, 4, and 7, covering a broader scope of anticompetitive behavior.

The class action lawsuit, while independent of VoIP-Pal’s antitrust suit, shares a common objective: to hold these telecom giants accountable for their harmful conduct. To ensure both lawsuits are adequately funded, VoIP-Pal and the plaintiffs in the class action have entered into a third-party litigation funding agreement, subject to court approval. This collaboration allows VoIP-Pal to cover all legal fees and ongoing expenses for the class action while maintaining the independence of the cases.

Both cases underscore the pervasive nature of the alleged antitrust violations, drawing parallels with significant legal battles that have shaped the landscape of U.S. antitrust law. By expanding the claims to include violations under the Clayton Act, these lawsuits emphasize the broad impact of the telecom defendants’ conduct on consumers and market competition.

This antitrust case is separate from the patent litigation cases the Company is litigating in the Western District of Texas, asserting the RBR ‘815, ‘005, and '606 patents and the Mobile Gateway patents. Updates on those cases will be forthcoming soon.

As of the latest trading session, the closing prices for each company's stock were as follows: AT&T at $19.49, Verizon at $40.85, T-Mobile at $196.22, and VoIP-Pal $.0128.

About VoIP-Pal.com Inc.

VoIP-Pal.Com, Inc. (“VoIP-Pal”) is a publicly traded corporation (OTCQB: VPLM) headquartered in Waco, TX. The Company owns a portfolio of patents relating to Voice-over-Internet Protocol (“VoIP”) technology that it is currently looking to monetize.

Any forecast of future financial performance is a “forward looking statement” under securities laws. Such statements are included to allow potential investors the opportunity to understand management’s beliefs and opinions with respect to the future so that they may use such beliefs and opinions as one factor among many in evaluating an investment. While the Company believes in the circumstances that legal action is needed to monetize its patents, patent litigation involves various risks and uncertainties that could affect its ability to monetize the patents. We recognize that it is impossible to predict the specific outcomes of litigation.

Corporate Website: www.voip-pal.com
IR inquiries: IR@voip-pal.com
IR Contact: Rich Inza (954) 495-4600

FAQ

What antitrust laws does VoIP-Pal's lawsuit against telecom giants allege were violated?

VoIP-Pal's lawsuit alleges violations of Sherman Act Sections 1 and 2, and Clayton Act Sections 3, 4, and 7 against AT&T, Verizon, T-Mobile, and Deutsche Telekom.

How many American smartphone subscribers does the class action lawsuit represent in the case against telecom companies?

The class action lawsuit represents 373 million American smartphone subscribers in the case against AT&T, Verizon, T-Mobile, and Deutsche Telekom.

What is the stock symbol for VoIP-Pal.com Inc. mentioned in the antitrust lawsuit news?

The stock symbol for VoIP-Pal.com Inc. is VPLM, traded on the OTCQB market.

How is VoIP-Pal funding the antitrust and class action lawsuits against telecom giants?

VoIP-Pal has entered into a third-party litigation funding agreement to cover all legal fees and ongoing expenses for both the antitrust and class action lawsuits, subject to court approval.