AT&T scotches iPhone user appeal, pays to settle

NEW YORK — AT&T is giving up on appealing an $850 award won by an iPhone user in small claims court, and is sending him a check.

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Matt Spaccarelli, of Simi Valley, Calif., sued the phone company because it was slowing down the data service on his phone. Spaccarelli has an "unlimited data" plan, but as of this fall, AT&T has begun slowing download speeds for these subscribers when they use more than a certain amount of data in a month.

Spaccarelli argued that "unlimited is unlimited," and the judge agreed at a hearing on Feb. 24. AT&T initially said it would appeal the decision.

On Friday, AT&T said it was sending Spaccarelli a check for $850, plus $85 for court costs.

AT&T has 17 million subscribers on "unlimited" plans.