Verizon claims it doesn’t lock your phones

We heard earlier in the week about Sprint’s locked phone settlement, which we said would set a precedent if it accomplished nothing else. Well, it appears that the precedent scared Verizon into settling a similar suit. Of course, Verizon denies any wrongdoing, saying that 1) they don’t lock phones with software, and 2) the settlement doesn’t mean that the plaintiffs’ claims have any merit. Mmhmm. It’s just another example of extreme posturing in the wireless industry.

“Verizon Wireless denies that it has ever installed software locks on the overwhelming majority of its wireless phones and denies any liability to the class representatives or the settlement class,” the carrier stated. “Verizon Wireless, however, has agreed to settle the actions for the purpose of avoiding the uncertainties and expense of, and diversion of business resources resulting from, further litigation.”

Verizon Wireless added: “No court has determined the merits of the plaintiffs’ claims or Verizon Wireless’s defenses. This notice does not imply that there have been or would be any findings of violation of the law by Verizon Wireless or that recovery could be had in any amount if the actions were not settled.”

Yes, but they did settle. Clearly, companies have their own reasons for doing so. But Verizon’s reason, to us, is pretty clear: Losing the case would set a more definite precedent. Neither Sprint nor Verizon have had decisions rendered against them, so if a larger scale phone locking case came against them, the plaintiffs wouldn’t have as much leverage with precedent.

[RCR Wireless News]

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