Sprint to pay $17.5 million to settle fee suit

Aug 12, 2009

(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.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Google's corporate products division changes name

add to favorites email to friend print save as pdf

Related Stories

Sprint Nextel signs networking deal with Ericsson

Jul 09, 2009

(AP) -- Sprint Nextel Corp. has signed a seven-year deal with LM Ericsson for the Swedish telecommunications equipment maker to take over operation of Sprint's wireless and wireline networks.

Sprint Nextel to buy Virgin Mobile USA

Jul 28, 2009

(AP) -- Sprint Nextel Corp. is intensifying its focus on the fast-growing market for prepaid cell phone service with a $483 million deal to buy Virgin Mobile USA Inc.

Recommended for you

Netflix unveils new way to share recommendations

7 hours ago

Netflix is giving its Internet video subscribers a more discreet way to recommend movies and TV shows to their Facebook friends after realizing most people don't want to share their viewing habits with large ...

Job listing service ZipRecruiter raises $63 million

Sep 01, 2014

ZipRecruiter, a California start-up that tries to simplify tasks for recruiters, has raised $63 million in initial venture capital funding as the 4-year-old service races to keep up with growing demand.

User comments : 0