Sprint facing USD1.2bn lawsuit

5 Nov 2008

Sprint Nextel is facing a USD1.2 billion federal class-action lawsuit over the fees it charges customers for the early termination of their contracts. The cellco lost a similar case in a California court in July this year and the attorney in that case, Scott Bursor, has now widened the scope of his appeal to become a full national class-action suit, Dow Jones Newswires reports. ‘After a full trial on the merits, we proved that Sprint Nextel’s termination fees violated California law,’ Bursor said. He argues that the termination fees charged by Sprint are much higher than the costs incurred by the company. Sprint has dismissed the suit as ‘cynical and opportunistic’, saying that the California court ruling was only preliminary and a full verdict has not yet been reached.