Background
A major telecommunications provider was subject to a landmark consumer class action that resulted in nearly $1 billion being recovered from more than 1,500 taxing jurisdictions nationwide. Filed on behalf of a class of nearly 50 million consumers, the litigation alleged that this telecommunications provider improperly charged and collected state sales tax on wireless data services.
Following final court approval, a national settlement fund was established under multidistrict litigation to recover refunds from taxing jurisdictions and distribute compensation to eligible class members. The settlement covered individuals and businesses that paid taxes, fees, or surcharges — collectively defined as “Internet Taxes” — on wireless data services, such as smartphone data plans, laptop connect cards, and pay‑per‑use data services.
Ankura Involvement
As settlement administrator, Ankura managed the end‑to‑end administration of one of the largest and most complex tax‑related consumer settlements in U.S. history, applying advanced data analytics, rigorous controls, and long‑term operational oversight to ensure accurate identification, compliant fund handling, and successful distribution.
Key Responsibilities and Execution Highlights
Class Member Identification and Validation: Verified nearly 15,000 billing codes and analyzed more than 45 million records to accurately identify eligible accounts.
Notification Strategy Execution: Designed and implemented a large‑scale, multi‑channel notification program reaching tens of millions of current and former customers through billing inserts, text messages, emails, postcards, and national publication.
Escrow and Fund Administration: Established and managed court‑supervised escrow accounts and subaccounts across more than 40 jurisdictions to ensure secure and compliant fund handling.
Payment Distribution and Controls: Implemented a multistep payment protocol incorporating pro‑rata calculations, audits, fraud prevention, and reissuance processes.
Claimant Communications and Support: Launched and operated a dedicated settlement website and hotline, managing more than 50,000 claimant inquiries with structured workflows and multilingual support.
Escheatment Compliance: Coordinated the return of unclaimed funds to state authorities in full compliance with court‑ordered distribution agreements and jurisdictional mandates.
Value Delivered
- Recovered and distributed nearly $1 billion in settlement funds via individual state escrow accounts.
- Ensured the successful distribution of hundreds of millions of dollars by accurate identification and notification of over 30 million eligible accounts through advanced data reconciliation and custom programming.
- Reissued tens of thousands of payments following robust verification protocols.
- Returned over $100 million in unclaimed funds to state authorities in full compliance with court-ordered distribution agreements and jurisdictional mandates.
About Mass Torts & Settlement Administration
At Ankura, we deliver tailored solutions to meet the complex demands of mass tort and class action litigation. With deep experience in some of the largest cases in history, we provide expert consulting to all parties involved. Our multidisciplinary team ensures accurate, defensible damage assessments and operationalizes complex settlements with efficiency and equity. We also leverage proprietary technology, including our ClaimsOnline platform, to help clients navigate even the most challenging litigation landscapes.
© Copyright 2026. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.
