Telemarketers, Verizon Wireless settle suit

Verizon Wireless has settled a lawsuit against two companies for making telemarketing calls to its customers promoting extended automobile warranties and it has sued three others, the company is expected to announce Tuesday.

Verizon Wireless filed suit in March 2008, alleging that telemarketers illegally used an automatic dialing system and masked, or "spoofed," the origin of the calls.

Howard Waterman, a company spokesman, said under the terms of the settlement that National Auto Warranty Services of Wentzville, Mo., and Voice Solutions of Clearwater, Fla., are prohibited from telemarketing to Verizon Wireless customers. Verizon Wireless will donate $50,000 from the settlement to a domestic violence foundation.

National Auto Warranty Services is now known as USfidelis. Its Web site states the company decided to stop making unsolicited, outgoing telemarketing calls last July.

Ken Fields, a spokesman for USfidelis, said, "Verizon Wireless made various claims against several companies. . . . Our company denied those claims, but both parties agreed to resolve the matter without the need for costly and protracted litigation."

Efforts to reach officials at Voice Solutions Monday were not successful.

The lawsuit filed April 16 is against National Dealers Warranty of St. Peters, Mo.; Dealers Warranty of St. Charles, Mo., and Tele Europe BV of Amsterdam.

Michael Carter, general counsel for National Dealers Warranty, said the company has not yet been served but expected the case would be dismissed. "Most of our marketing is done via mail and through television and radio," he said.