Total Call International Inc. of Los Angeles will pay $300,000 in civil penalties to settle a lawsuit alleging that the cellphone company charged customers steep undisclosed fees.
Under the terms of the settlement, the state, which filed the suit as part of an enforcement action, will monitor the company's fees for four years.
The settlement came shortly after California Atty. Gen. Jerry Brown filed the suit Friday in San Francisco Superior Court.
A court order blocking Total Call from charging "hidden and deceptive" fees on its prepaid calling cards was also issued Friday, said Brown spokesman Scott Gerber.
Total Call International admitted no wrongdoing in the settlement.
The company did not respond to requests for comment Friday.
The state's complaint against Total Call said the company was breaking California's false-advertising and unfair-competition laws by not disclosing all the fees charged on its prepaid calling cards.