Sprint Back In Court Over Early Termination Fees - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Government // Mobile & Wireless
News
1/29/2009
04:34 PM
50%
50%

Sprint Back In Court Over Early Termination Fees

A California judge is ordering a new trial in a class-action lawsuit against Sprint regarding its contract cancellation fees that could potentially cost $300 million.

Sprint Nextel could be forced to pay up to $300 million as a California judge has ordered a new trial in a class-action lawsuit regarding its early termination fees, or ETF.

Another California judge had previously ruled against Sprint for the cancellation fees, but jury verdicts found that subscribers did breach their contracts with Sprint when they terminated early. The amount of damages, if any, has been up in the air, and the new trial could be a boon for the plaintiffs.

"We had already won on the key issue in the case by providing that Sprint's termination fees are illegal," said Scott Bursor, the plaintiffs' lead trial counsel, in a statement. "But this latest ruling eliminates any reduction or set off against our claim and restores every penny of our $299 million victory."

Sprint said the new trial is completely unwarranted and it will appeal the decision.

"We're not surprised that the plaintiffs' attorneys brought this motion given that they lost the jury verdict and were awarded zero damages from the original jury decision," a Sprint spokesman told InformationWeek. "However, we're baffled as to why a new trial was granted based merely on an unsupported assumption of what the jury must have been thinking when it reached its verdict."

The third-largest U.S. wireless carrier is also facing a $1.2 billion nationwide ETF lawsuit from the same attorneys, but that could be derailed thanks to a recent $17.5 million settlement from Sprint.

The wireless carrier joins the likes of AT&T, T-Mobile, and Verizon Wireless in changing its ETF policy. The $200 Sprint cancellation fee now decreases by $10 per month beginning in month six of the contract, and the adjusted ETF only applies to new contracts.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
Strategies You Need to Make Digital Transformation Work
Joao-Pierre S. Ruth, Senior Writer,  11/25/2019
Commentary
Enterprise Guide to Data Privacy
Cathleen Gagne, Managing Editor, InformationWeek,  11/22/2019
News
Watch Out: 7 Digital Disruptions for IT Leaders
Jessica Davis, Senior Editor, Enterprise Apps,  11/18/2019
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
Slideshows
Flash Poll