Sprint-Nextel Sued for $1 Billion Plus in Federal Class Action

A federal class action lawsuit has been launched against Sprint-Nextel Corp over the legality of their early termination fees. The suit is seeking ETF refunds for a nationwide class of subscribers, with the plaintiffs alleging that the cell phone giant has, since 1999, charged approximately $1.2 billion in ETFs.

This suit results from a recently completed trial in which Sprint-Nextel was found to be violating California state law with its termination fees. That suit established that the fees were arbitrary, and designed to prevent unhappy customers from dropping their Sprint-Nextel services. The federal class action hopes to prove that these fees are in fact in violation of federal law as well.

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Last updated on Nov-3-08