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, "omeday, 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.
