Back to press releasesMarch 20, 2007– IDT Telecom, Inc., Union Telecard Alliance, LLC and Epana Networks, Inc. have agreed to a settlement of the lawsuit brought by IDT and UTA against Epana and numerous other prepaid calling card companies. IDT/UTA and Epana will now work together to change unlawful and deceptive practices in the prepaid phone card industry. Earlier today, terms of the settlement were so-Ordered by the Honorable Susan D. Wigenton, United States District Court Judge for the District of New Jersey.
IDT/UTA and Epana will promote standards that protect consumers of prepaid card services from deceptive practices and that establish a level playing field for all companies that sell, and provide telecommunications services for, prepaid cards. IDT/UTA and Epana also agreed to develop standard disclosures, disclaimers and definitions for prepaid phone cards; mechanisms for testing the accuracy of disclosures and disclaimers made in connection with prepaid phone cards; and mechanisms for
testing the ability of prepaid phone cards to deliver the number of minutes promised for particular destinations. The parties also agreed to undertake efforts to promote such standards among all prepaid card business and to promote independent monitoring of compliance with such standards.
IDT/UTA had alleged that unlike its own calling cards, those of many of its competitors deliver only
approximately 60% of the minutes of telecommunications services (a) announced and promoted on voice prompts heard by consumers in connection with calls made by using the defendants’ cards and (b) advertised by such competitors on radio, newspaper, poster, internet, or other medium. Epana denied all of the allegations in IDT/UTA’s complaint, and maintained that it is compliant with all state and federal laws regarding the provision of telecommunications services and that it uses what it believes to be the strongest and most conservative disclaimers informing consumers of all fees and charges applicable to Epana’s prepaid phone cards.
Based on Epana’s commitment to delivering 100% of minutes promised to consumers and collaborating to change the prepaid phone card industry and in an effort by IDT/UTA to streamline the litigation they commenced, IDT/UTA agreed to withdraw their claims asserted as against Epana. IDT and UTA’s lawsuit against the remaining defendants is still continuing in federal court in Newark, New Jersey.
About IDT Telecom, Inc. and Union Telecard Alliance, LLC
IDT Corporation (NYSE: IDT, IDT.C) is a multinational company with operations that span various industries. Through its Telecom subsidiary, IDT provides retail and wholesale telecommunications services and products, including pre-paid and rechargeable calling cards, consumer local, long distance, and wireless phone services, and wholesale carrier services. UTA is one of the largest distributors of prepaid phone cards in the United States and distributes over 200 different phone cards throughout the country.
About Epana Networks, Inc.
Epana Networks is a leading international telecommunications carrier and prepaid calling card
provider providing consumer telephony services to more than 200 international destinations around the world. Epana delivers technologically advanced, competitively priced prepaid calling card services to enable millions of people to communicate around the world every day. For more information, go to www.epana.com.
