DirecTV Class Action

Nature of the Lawsuit

A lawsuit has been filed on behalf of current and former DirecTV Dealers who sold, installed, repaired and maintained DirecTV's satellite television equipment for DirecTV from 1996 to the present. The lawsuit alleges that DirecTV failed to pay commissions to hundreds or perhaps thousands of Dealers nationwide.

The lawsuit was originally filed in state court in Oklahoma. However, due to the existence of arbitration provisions in the Residential Dealer Agreements and the Sales Agency Agreements, the Oklahoma court sent the case to the American Arbitration Association in California.

The arbitration was commenced in March 2004. In the Statement of Claim (similar to a Complaint) the Dealers describe in detail the commissions they claim were withheld from them. Specifically, the Dealers contend that they have not received all of the commissions due to them for: (i) installing and activating DirecTV equipment for a new customer (ii) the continued subscription of DirecTV by the customers the Dealer activated; (iii) performing repair and maintenance services for DirecTV customers; and (iv) meeting certain volume quotas established for activating new DirecTV customers.

In other words, the Statement of Claim asserts that DirecTV failed to pay Dealers the appropriate amount of residual, maintenance and volume commissions. Separately, the Dealers allege that DirecTV wrongfully assessed "charge-backs" to Dealers' accounts, thereby improperly reducing Dealer commissions.

As a result of DirecTV's conduct, DirecTV's Dealers are seeking to recover all unpaid and improperly reduced commissions and to recover payments withheld due to wrongful charge-backs.

For more information regarding this case, please fill out the attached contact form.

If you would like to tell us about your experience with Directv as it relates to this proceeding, please fill out the attached questionnaire.

Decision Regarding Classwide Arbitration

Directv contends that the arbitration clauses in the Residential Dealer Agreement and Sales Agency Agreement require that disputes between DirecTV and its Dealers must be submitted to individual arbitrations. Since the arbitration provisions do not specifically address the issue of individual Dealer arbitration vs. class action arbitration, the Dealers asked that the case proceed as a class action arbitration.

On March 10, 2005 the arbitration panel decided (2 to 1) that the contracts between DirecTV and its Dealers permit classwide arbitration. DirecTV is appealing this decision to the State Court in California. A hearing on DirecTV's petition is scheduled for June 16, 2005 in Los Angeles County Superior Court.

For more information regarding this case, please fill out the attached contact form.

If you would like to tell us about your experience with Directv as it relates to this proceeding, please fill out the attached questionnaire.