Lawsuit slams Sprint over ETF fees

Wed, 11/05/2008 - 7:15am
Rhonda Wickham, Wireless Week

Sprint Nextel is facing a federal class-action lawsuit over claims that it wrongly charged subscribers $1.2 billion in early termination fees (ETFs), according to The Wall Street Journal.

Earlier this year, a California judge ruled that Sprint would have to pay $73 million for its ETF practices. Scott Bursor, the same attorney for the California case, simply widened the scope to this class-action lawsuit.

Operators from Sprint to Verizon have been challenged by consumer groups over their old ETF fees. For their part, the operators claim they need to charge those fees to recover their subsidies; consumers argue that it unfairly restricts them from switching companies.

Arguments on the merits of the case will be heard tomorrow, with a final decision expected within 90 days.

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