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Sprint Nextel Corp.

A class action lawsuit has been filed against the mobile phone operator for allegedly violating federal anti-racketeering laws by failing to adequately inform consumers about data fees accompanying picture mail service subscriptions. The lawsuit was filed in the US District Court for the Northern District of Alabama in Birmingham and claims Sprint Nextel used deceptive, false, fraudulent, and misleading advertisements to entice customers into purchasing the 'Sprint Picture Mail' plan for a $5/month service charge. The suit claims Sprint Nextel failed to disclose the true charges associated with this add-on service, which were exorbitant and in many cases caused the purchaser's bill to double.

The class action claims Sprint Nextel violated RICO laws by investing Picture Mail Plan income in the marketing, facilitation and management of offers integral to continuing and expanding the scheme; in paying employees for their role in that process, including bonuses tied to revenue generated from the scheme; maintaining existing facilities and framework of the scheme; engaging in various contractual relationships; and otherwise maintaining these enterprises.

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Last updated on Mar-17-08