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Judge Approves $17.5 Settlement for Sprint Nextel Class Action

A federal judge has approved a $17.5 million settlement in the class action against Sprint Nextel that stems from flat rate fees charged by the phone company to customers who end their service contracts early.

The class includes all customers who were subject to early-termination fees of $150 to $200 in cell phone contracts with Sprint Nextel entered into between July 1, 1999, and Dec. 31, 2008, even if they did not in fact pay them.

Under the terms of the agreement $14 million will be provided in cash and $3.5 million in activation fee waivers, bonus minutes and credit forgiveness. Any remaining monies will be put toward the purchase of phone cards for U.S. soldiers and their families.

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Last updated on Jan-22-10