Clearwire Faces Consumer Fraud Class Action over Broadband Speeds

Seattle, WA: Clearwire is facing a potential class action lawsuit filed by former customers who allege that Clearwire was effectively operating a Ponzi scheme because the service provider intentionally oversold its services to build the capital needed for network expansion.

The suit claims, “Clearwire advertises and sells a service, knowing in advance that there is no way it can provide such service on an ongoing basis.” And, “Someday, if Clearwire sells enough subscriptions, it may have sufficient funds to go back and create the infrastructure to support its Internet service and make good on its promises.”

The suit also claims that Clearwater undertook false advertising by failing to provide the minimum 1Mbps access as explained in the advertising for the service, thereby violating advertising and fair trade laws.

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Last updated on Mar-22-11

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Clearwire a Broadband Ponzi Scheme Says Suit

New York, NY: Millions of Americans have signed up with Clearwire, an Internet subscriber service based in Washington state that promises lightning fast performance, but attorney Peter Seidman from the firm of Milberg LLP in New York says many of those subscribers are severely disappointed with what they get [READ MORE]

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