Sprint Loses 'Early Termination' Case, Must Pay $73 Million

[David Farber <dave () farber net>]

________________________________________
From: lynn [lynn () ecgincc com]
Sent: Wednesday, July 30, 2008 7:38 AM
To: David Farber
Subject: Sprint Loses 'Early Termination' Case, Must Pay $73 Million

http://www.informationweek.com/news/telecom/regulation/showArticle.jhtml?articleID=209800491


Sprint Loses 'Early Termination' Case, Must Pay $73 Million

The ruling could be a bad sign for AT&T and T-Mobile, which are facing
similar litigation.

By Marin Perez
InformationWeek
July 29, 2008 03:30 PM

A California judge ruled Tuesday that Sprint Nextel (NYSE: S) would have
to pay $73 million in a class-action lawsuit regarding early termination
fees.

The ruling is tentative, as Sprint will have about two weeks to come up
with a response before a final decision is made in Alameda County, Calif.,
Superior Court.

"Now that the ruling is in, the outcome is clear," said Scott Bursor, an
attorney representing the plaintiffs, to reporters. "We won this trial.
And Sprint lost. Convincingly."

Representatives from Sprint said they are reviewing the ruling, which said
former customer will receive about $73 million in refunds.

Customers are becoming increasingly frustrated with early termination
fees, and are turning to the courts. AT&T (NYSE: T) is currently facing
litigation regarding its cancellation fees, and Verizon (NYSE: VZ)
Wireless recently settled its cases for $21 million earlier this month.
T-Mobile has also been involved in lawsuits regarding this issue.

snip




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