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C. 8

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	August 11, 2020

Contra

Costa

County

Subject:

Settlements of State of California ex rel. OnTheGo Wireless, LLC v. Cellco Partnership d/b/a Verizon Wireless, et al.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 08/11/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Cynthia Shehorn, 925-957-2495

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: August 11, 2020
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

APPROVE and AUTHORIZE settlements with defendants Cellco Partnership d/b/a Verizon Wireless ("Verizon") and AT&T Mobility National Accounts, LLC, ("AT&T") in the False Claims Act lawsuit State of California ex rel. OnTheGo Wireless, LLC v. Cellco Partnership d/b/a Verizon Wireless, et al. (Sacramento Superior Court Case No. 34-2012-00127517), requiring payments to the County totaling approximately $979,500, as recommended by the Purchasing Agent. (100% Incoming Funds.)
DIRECT the Purchasing Agent to complete and return by September 17, 2020, consents and releases to agree to the terms of the settlements and to release Verizon and AT&T from claims that were raised or that could have been raised in the lawsuit.

FISCAL IMPACT:

The County will receive approximately $979,500 in settlement funds from Verizon and AT&T. Funds will be deposited in the General Fund, General Purpose Revenue.

BACKGROUND:

This board order authorizes the County to participate in partial settlements with Cellco Partnership d/b/a Verizon Wireless ("Verizon") and AT&T Mobility National Accounts, LLC. (AT&T) in a False Claims Act lawsuit filed on behalf of the State of California and several public agencies against several wireless carriers. The Board of Supervisors previously approved partial settlements with defendants Nextel of California, Inc., and Sprint Solutions, Inc.

The lawsuit, State of California ex rel. OnTheGo Wireless, LLC v. Cellco Partnership d/b/a Verizon Wireless, et al.(Sacramento Superior Court Case No. 34-2012-00127517), alleges that several wireless carriers, including Verizon and AT&T, billed public agencies more than the carriers agreed to charge under multi-agency contracts for wireless services. Under those contracts, the County paid Verizon approximately $9.6 million, and it paid AT&T approximately $6.5 million, for wireless services during the period covered by the lawsuit on behalf of the State of California, Contra Costa County, and several other cities, counties, and public agencies.

The County received a notice that the Relator has agreed to settlements with Verizon and AT&T. Under the settlements, Verizon will pay approximately $68.2 million, plus attorney's fees, for its alleged unlawful conduct, and AT&T will pay approximately $47.9 million, plus attorney's fees, for its alleged unlawful conduct. The County's share of the proceeds is approximately $979,500 (approximately $473,651 from Verizon and approximately $505,853 from AT&T) after deducting the proposed Relator's award of 43% of the settlement. The Court will consider giving final approval of these settlements on September 24, 2020. The County must return consent and release forms by September 17, 2020, to release Verizon and AT&T from all claims related to its alleged unlawful billing practices that were raised or could have been raised in this litigation. If the County does not sign and return the consent and release forms by that date, the County's settlement amounts would be reduced by 10 percent.

The Purchasing Agent recommends approving the settlements reached with Verizon and AT&T and authorizing the execution and return of consent and release forms to ensure that the County receives the full amount of its allocation of settlement funds.

CONSEQUENCE OF NEGATIVE ACTION:

If the County takes no action and the court approves the settlement, the County would only receive approximately $881,550 in settlement funds.