Settlement FAQs

what is birch communications settlement

by Dr. Wendell Kuhic III Published 3 years ago Updated 2 years ago
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BIRCH COMMUNICATIONS TO PAY $6.1 MILLION TO SETTLE INVESTIGATION INTO DECEPTIVE MARKETING AND BILLING PRACTICES. Page 1. Media Contact: Mark Wigfield, (202) 418-0253.Dec 29, 2016

Full Answer

How much did Birch Communications pay out for a lawsuit?

Birch Communications, Inc. (“Birch Communications”) has agreed to pay $12,000,000 into a fund from which eligible persons or entities who file claims will receive cash awards, estimated to be approximately $100 to $200 total per claim.

When was Birch Communications founded?

Founded in 1996 in the wake of the 1996 Telecommunications Act, several years later the company began acquiring other telecom companies in an effort to increase its network size and service offerings. Birch Communications raised $77.5 million in funding in 2011, and $110 million in funding in 2012 after it financed a new $90 million facility.

What did Birch do with $323 million?

"Birch Creates Gian National Cloud Communications Network with $323 Million Cbeyond Acquisition". TMC Net. Retrieved August 26, 2015. ^ "StackPath". www.lightwaveonline.com. Retrieved 2020-04-28. ^ a b "Birch completes Selectel acquisition".

Does Birch Communications own Cbeyond?

Birch Communications also acquired Cbeyond in 2014 for $323 million, which expanded Birch’s cloud service offerings. In September 2014, Birch announced that they had made 24 acquisitions, worth more than $500 million. Birch has regional operations centers in Atlanta, Macon, Georgia and Emporia, Kansas with approximately 1,400 employees.

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Birch Communications FCC Lawsuit Settlement

Also, Buckley writes “The FCC said the settlement with Birch Communications resolves an Enforcement Bureau investigation into whether the company engaged in deceptive and abusive marketing practices.

Other FCC Litigation and FCC Lawsuit Settlements

Buckley reports “Birch is hardly alone in having to pay fines for cramming and slamming.” Another FCC lawsuit settlement notes “Four phone companies had to pay the FCC $11.7 million in fines for apparently levying “mystery fees” on their customers.

Filing an FCC Complaint

The Federal Communications Commission FCC will handle any valid telecom billing issues or complaints from consumers. Go online to file a telecom billing complaint regarding a telecom billing or service issue. The FCC will serve your complaint to your provider. Your provider then has 30 days to send you a response to your complaint.

Mercury Payment Systems Overcharge Class Action Lawsuit and Settlement

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What You Need To Know

According to court documents, eligible class members “include persons who, on or after Oct.

What is Birch Communications?

Birch Communications is an American provider of IP-based communications, network broadband, cloud computing, and information technology services to small, mid-sized, enterprise and wholesale business customers in the United States, Canada and Puerto Rico.

How much did Birch Communications raise in 2011?

Birch Communications raised $77.5 million in funding in 2011, and $110 million in funding in 2012 after it financed a new $90 million facility. Atlanta Business Chronicle named Birch one of Atlanta's Top 50 Private Companies in 2013, and that year company revenues were approximately $207 million.

What is Birch carrier solutions?

Birch Carrier Solutions, the wholesale division of Birch Communications, Inc. , expanded throughout 2013. That year, wholesale clients such as Belgacom and Primus Telecommunications were added to their client portfolio. In February 2013, CoBank committed around $12 million to Birch's operations, becoming a part of Birch's Senior Secured Credit Facility Syndication Group. Birch continued its “tuck in” acquisition strategy with its March 2013 acquisition of Chattanooga, Tennessee -based Covista Communications. The strategy targeted companies that would increase customer density and expand Birch’s network near existing markets. Covista Communications was a facilities-based telecommunications service provider with business and residential customers in 48 states, and large switching centers in Tennessee and New York. The acquisition expanded Birch's network by ten states, bringing its total number covered to 45.

What company did Birch acquire?

Birch acquired customers from Liberty-Bell Telecom in June 2014, a subsidiary of DishNet. The acquisition expanded Birch’s customer base in the Denver, Colorado area. Later that month, Birch acquired Louisiana-based EveryCall. Birch Communications also acquired Atlanta-based Cbeyond in July 2014 for $323 million. Following the purchase, Cbeyond was delisted from the NASDAQ stock exchange and its operations were folded into Birch. The acquisition marked a change in Birch’s service portfolio and expanded Birch’s cloud service offerings. The same month Birch acquired Nebraska -based Selectel Communications, its 20th acquisition since 2006.

When did Birch Communications buy Freedom Communications?

In late 2008, Birch Communications Inc. purchased approximately 30,000 business access lines from North Little Rock, Arkansas -based Navigator Telecommunications for an undisclosed sum. The acquisition increased consumer density for Birch in existing markets and allowed it to expand into California and Arkansas. With the acquisition, Birch increased its market presence to 31 states, with around 325,000 access lines. The acquisition of Cleartel Communications in August 2009 added around 100,000 business and residential sites to Birch’s customer base as well as facilities in Florida. Birch finalized a purchase of Freedom Communications USA 's assets in October 2010. In December 2010, Birch then finished the acquisition of assets from American Fiber Network and CloseCall America. The acquisitions added 60,000 access lines to Birch’s customer base of 300,000 and expanded Birch’s operations to 38 states.

When did Birch acquire Acutel?

In April 2011, Birch acquired Acutel assets, a company which is based in Dallas, Texas. Birch Communications finished a $77.5 million funding round in June 2011. The company announced that some of the funds would be used to finance further acquisitions, with a Birch spokesman explaining that "we've gotten very good at integrating new customer bases into our systems and not increasing our [operational] costs. We run a tight ship." In October 2011, 56,000 business and residential access lines in the Orlando, Florida area were added to Birch's network, with the acquisition of Cordia Communications for $8 million. The acquisition was financed in part from the funding round that summer. By November 2011, all excluding two of the 12 acquisitions made by Birch since 2001 (Acutel and Cordia) had been "funded through its own profits and from the bank accounts of Oddo and his partners."

When did Birch Communications acquire Cbeyond?

Birch Communications also acquired Cbeyond in 2014 for $323 million, which expanded Birch’s cloud service offerings. In September 2014, Birch announced that they had made 24 acquisitions, worth more than $500 million. Birch has regional operations centers in Atlanta, Macon, Georgia and Emporia, Kansas with approximately 1,400 employees.

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What is the FCC settlement with Birch Communications?

The FCC said the settlement with Birch Communications resolves an Enforcement Bureau investigation into whether the company engaged in deceptive and abusive marketing practices.

How much did Birch Communications pay?

Birch Communications will pay $6.1 million to settle an FCC investigation into what the regulator said was deceptive marketing and billing practices. As part of the settlement, Birch will pay a $4.2 million penalty to the FCC and refund $1.9 million to consumers who filed complaints about unauthorized carrier changes or unauthorized charges within ...

How much does Birch pay?

Birch pays $6.1M to settle FCC billing, marketing investigation. Birch has been ordered to pay a $4.2 million penalty to the FCC and refund $1.9 million to consumers who filed complaints about unauthorized carrier changes or unauthorized charges. Birch Communications will pay $6.1 million to settle an FCC investigation into what ...

How much did Birch pay for cramming?

At that time, a Senate Commerce study revealed that cramming costs consumers $2 billion a year .

Does the FCC require service providers to notify their customers at the point of sale?

Under the FCC’s plan, the FCC would require service providers to notify their customers not only at the point of sale but also on their websites that they have the option to block third-party charges from their telephone bills, if the carrier offers that option.

Does Birch have to record calls?

In addition to the $4.2 million fine and the $1.9 million consumer refunds, the FCC is requiring Birch to record all of its sales calls , verify any changes to a consumer’s preferred carrier, provide enhanced customer notice about early termination fees, and promptly investigate consumer complaints about unauthorized charges and carrier changes. Birch will also have to name a senior corporate manager as a compliance officer and file compliance reports with the FCC for five years.

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