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Sprint to pay $17.5M to settle ETF suit

Thu, 08/13/2009 - 8:25am
The Associated Press

OVERLAND PARK, Kan. (AP) – Sprint Nextel Corp. has agreed to pay $17.5 million to settle a lawsuit claiming the fees it has charged customers who end their wireless contracts early are illegal.

The Overland Park, Kan.-based provider said it will pay $14 million into a common fund and provide an additional $3.5 million in non-cash benefits to class members.

The lawsuit, filed in federal court in New Jersey, covers Sprint, Nextel or Sprint Nextel customers who signed personal or mixed personal/business service contracts between July 1, 1999, and Dec. 31, 2008.

Sprint said it will not insert a flat early termination fee provision in its customer contracts until 2011 but may charge pro-rated fees up until then.

Company spokesman Matt Sullivan said the settlement resolves all outstanding litigation regarding early termination fees, except for a state court case pending in California.

The company has denied that the fees are illegal. A hearing to approve the settlement is scheduled for Oct. 21.

More Broadband Direct 08/13/09:
•  Insight's Q2 revenue up; RGU growth slows
•  Discovery joins Comcast's On Demand Online trial
•  Sprint to pay $17.5M to settle ETF suit
•  Clearwire downgraded on competition, spending
•  Qwest balks at broadband stimulus plans
•  Mo. seeks $142M from stimulus for Internet access
•  Start-up Boxee brings in $6M in round of funding
•  Broadband Briefs for 08/13/09

 

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