Virgin Mobile Secures Dismissal of Trade Practices Case

Skadden recently won dismissal of a putative class action alleging deceptive trade practices and breach of contract claims against client Virgin Mobile. The lead plaintiff contended that packaging stating that service with Virgin Mobile phones required "no commitments" was deceptive in light of Virgin Mobile's policy requiring a $20 payment every 90 days to maintain service for its "pay-as-you-go" plan. Skadden argued the policy is clearly disclosed on both Virgin Mobile's Web site and in the "Terms of Service" booklet inside the packaging of each phone.