Purchasers of Lycatel Calling Cards May Claim Settlement Benefits. This Class Action Settlement May Affect Your Rights.

NEWARK, N.J., April 27 /PRNewswire/ -- The following statement is being issued by Wilson Elser Moskowitz Edelman & Dicker LLP regarding the Orlando Ramirez v. The Lycatel Group d/b/a Lycatel LLC.

A settlement of a class action lawsuit may affect you if you purchased calling cards sold or distributed by The Lycatel Group d/b/a Lycatel LLC ("Lycatel"). The settlement will provide benefits to eligible persons who bought Lycatel Calling Cards before December 8, 2009, anywhere in the United States. If you qualify, you may claim your benefits as called for in the settlement, or you can exclude yourself from the settlement, or object.

This is only a summary legal notice. A more detailed notice may be obtained at the websites listed below, or by calling the toll free telephone number listed below. A full copy of the settlement agreement may also be obtained by visiting these websites or calling this number, (866) 657-4002.

What's This About?

The person who filed the class action lawsuits, the "Plaintiff," claimed that the "Defendant," Lycatel, failed to inform consumers sufficiently about the applicable rates and charges for its prepaid and rechargeable calling cards, and thereby allegedly violated various state consumer protection acts and other laws. This lawsuit was filed in federal district court in New Jersey and combined by that Court under the name Orlando Ramirez v. The Lycatel Group d/b/a Lycatel LLC, Civil Action No. 07-5533(PS)(the "Lawsuit"), Lycatel denies the claims and charges raised in the lawsuit, and denies that it engaged in any wrongdoing in connection with its calling cards.

Am I Affected By The Settlement?

The proposed settlement affects a group of people, called a "Class," that may include you. The proposed settlement affects you and you may be a member of the Class if you purchased an eligible Lycatel calling card in the United States that was sold, or distributed by Lycatel before December 8, 2009 including certain cards that do not have Lycatel's name on them.  A list of all eligible calling cards may be obtained by visiting the websites or calling the number listed below.

What Benefits Does The Settlement Provide?

The settlement requires Lycatel to provide up to one million refund PINs in a value not to exceed $2,250,000.00 to call domestic locations and certain international locations to Class members if they (i) submit a Personal Identification Number ("PIN") from a Lycatel Calling Card that they purchased before December 8, 2009; or (ii) submit a sworn statement confirming that they purchased a Lycatel Calling Card before December 8, 2009. The settlement also requires Lycatel to make up to $450,000 donations of refund PINs to charity.

How Do I Get An Award?

Under the settlement, Class members may be entitled to receive awards in the form of refund calling card Personal Identification Numbers ("Refund PINs"). To be eligible to receive Refund PINs, you must either (i) submit one or more eligible PINs to Lycatel taken from a Lycatel Calling Card that you previously purchased; or (ii) submit a sworn statement confirming that you purchased a Lycatel Calling Card and providing other information about the purchase and use of the calling card. These Refund PINs can be used to make free domestic calls and free calls to certain international locations. If the settlement is approved by the Court, and you purchased one or more eligible calling cards, you must do one of the following in order to receive a Refund PIN:

If you have the PINs from Lycatel Calling Cards you previously purchased

Access Lycatel's interactive voice response system by either calling (866) 657-4002 or any of Lycatel's customer service numbers, or by accessing a link on Lycatel's website. You must then enter a PIN from an eligible Calling Card that was purchased before December 8, 2009. You may be required to provide your name and address, telephone number, birth date, and the name of the calling card associated with the PIN.

If you do not have the PINs from Lycatel Calling Cards you previously purchased

Mail a sworn, written statement to "Lycatel LLC Settlement, c/o The Garden City Group, Inc., P.O. Box 9409, Dublin, Ohio 43017-4509" declaring that you are the purchaser of an eligible Lycatel Calling Card, and setting forth the following: the type of Lycatel Calling Card purchased; the location at which it was purchased; the month and year in which it was purchased; and at least one phone number that was called by the Claimant when he or she used the card. The statement must also provide a valid address to which Lycatel will mail the Refund PIN. The sworn statement must contain the following statement:  "UNDER PENALTY OF PERJURY, I HEREBY AFFIRM AND CERTIFY THAT THE INFORMATION PROVIDED ON THIS FORM IS TRUE AND ACCURATE.  THE INFORMATION PROVIDED ON THIS FORM IS SUBJECT TO AUDIT AND REVIEW, AND WILLFULLY FALSE STATEMENTS WILL BE REPORTED TO THE COURT."

Lycatel, subject to review by an arbitrator, will then determine if you are eligible for a refund based on confirmation of an eligible PIN and remaining funds in the pool. If you are eligible, Lycatel will provide you with a Refund PIN.

When Must I Claim An Award?

All claims must be made during a six-month claims submission process that may begin as early as July 16, 2010. If the settlement is approved but appealed to a higher court, the claims submission process may be delayed until any appeals are resolved. Because the date by which a claim may be submitted is to be determined based upon the Court's orders, you may:

to find out when the claims submission period has begun.

When Will The Settlement Be Finally Approved?

On June 16, 2010 at 10:00 a.m., Judge Patty Shwartz of the U.S. District Court for the District of New Jersey will hold a Fairness Hearing in the lawsuit to consider whether to approve the settlement. The Court has appointed attorneys to represent the Class called "Plaintiffs' Counsel." At the Fairness Hearing, Plaintiffs' Counsel will ask the Court for attorneys' fees and expenses for no more than $750,000.00. The Court may award less than that amount. Lycatel has agreed to pay such attorneys' fees and reimbursement expenses as may be awarded by the Court within this limit. You may hire your own attorney, if you wish. However, you will be responsible for your attorney's fees and expenses.

What Are My Options?

Your options

Option 1 – Submit a Claim

Follow the procedure under How Do I Get An Award?

Option 2 – Object

If you object to the settlement you must write to the Court and to counsel for both Plaintiff and Lycatel.  You may attend the hearing.  You have a right to object to the settlement only if you purchased a Lycatel Calling Card on or before December 8, 2009.

Option 3 – Opt Out

You have a right to exclude yourself or "opt out" of the settlement only if you purchased a Lycatel Calling Card on or before December 8, 2009.  You must write to counsel for both Plaintiffs and Lycatel if you do not want to be included in the settlement.

Option 4 – Do Nothing

Give up your potential claim to any refund PINs.

You may also appear at the Fairness Hearing, but you do not have to do so to exercise any of the options above.  If the Court approves the proposed settlement and you are a member of the Class, you will be bound by the Court's decisions, and you will not be able to sue Lycatel for the claims that were made in this lawsuit.

For More Information:

For further details, call (866) 657-4002, visit www.Lycatel.com, visit www.freedweiss.com, email info@FreedWeiss.com or write to plaintiffs' counsel, Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. or Freed & Weiss LLC, or defense counsel whose addresses appear below:

SOURCE Wilson Elser Moskowitz Edelman & Dicker LLP