A U.S. district court in Illinois has approved a class action settlement involving AT&T Mobility through which AT&T agreed to refund $956 million to customers who were improperly taxed for accessing the Internet through their mobile phones. Filed in all 50 states and consolidated before the U.S. District Court of Northern Illinois, the class action suits allege that AT&T’s practice of collecting taxes for mobile Internet transmissions violates the Internet Tax Freedom Act, which placed a moratorium on Internet access taxes through November 1, 2014. In remarks about the settlement, an AT&T spokesman stressed that AT&T “collected only those taxes that we believed we were required to collect” and that his company stopped collecting certain taxes and fees on customer data plans as part of the settlement. While adding that AT&T did nothing wrong and that “no court has found that AT&T Mobility committed any wrongdoing,” the spokesman further explained that AT&T decided to settle “to avoid the burden and cost of further litigation.” Observers say that the refund process could be especially complicated as AT&T did not keep the monies in question and passed them on to state and local tax officials. Sources indicate that AT&T will likely have to seek tax refunds or tax credits from state and local officials and deposit these reimbursements into an escrow account through which subscribers would be repaid. AT&T will also need to calculate how much excess tax was collected from each subscriber as certain portions of subscriber bills were taxed appropriately and others were not.