Vodafone, the world’s biggest mobile telephone operator, is being sued in the US for allegedly causing brain cancer to users of its mobile telephone network. In July this year, for the first time, Vodafone formally disclosed to its shareholders in its annual report the existence of the early stage litigation against it, adding:
"The company is not aware that the health risks alleged in such personal injury claims have been substantiated and will be vigorously defending such claims".
If upheld, the potential exposures to these claims are thought to run into US $ Bns. Vodafone is no stranger to such claims. Class actions in the US were filed in 2001 against a company in which Vodafone owns a 45% stake. However, this time though, Vodafone is actually named as one of a group of five defendants, which consist of mobile telephone operators, equipment suppliers and handset manufacturers. Each of the 4 claimants seeks US $1M in punitive damages, as well as compensatory and other awards.
