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T-Mobile, Sprint merger class action lawsuit overview:
- Who: A group of Verizon and AT&T subscribers filed a class action lawsuit against T-Mobile, Deutsche Telekom AG and SoftBank Group Corp.
- Why: Verizon and AT&T subscribers claim the April 2020 merger between T-Mobile and Sprint was anticompetitive and injured them financially.
- Where: The class action lawsuit was filed in Illinois federal court.
The April 2020 merger between T-Mobile and Sprint was an anticompetitive acquisition and collectively cost U.S. small businesses and AT&T and Verizon subscribers billions of dollars, a new class action lawsuit alleges.
A group of AT&T and Verizon subscribers claim the merger “combined two fierce competitors into a single behemoth with no incentive to compete meaningfully” against the “equally large” Verizon and AT&T.
Subscribers claim it was always T-Mobile’s long-term plan to merge with another wireless carrier to create “the best path to extracting every possible cent from American consumers and small businesses.”
T-Mobile class action claims number of states attempted to prevent merger
Fourteen states and the District of Columbia filed a lawsuit against the companies in an attempt to prevent the merger after it was announced in April 2018, according to the T-Mobile class action.
At the time, the states argued the merger would reduce competition and result in at least $9 billion worth of harm to consumers each year.
After the lawsuit from the states failed to stop the merger, subscribers claim, T-Mobile and Sprint would merge to become “a single large competitor that is more than happy to observe a competitive détente in return for stable market shares and prices.”
Since the merger, subscribers argue competition has “declined precipitously” and that quality-adjusted prices have inflated since T-Mobile, AT&T and Verizon have “no reason to compete as vigorously for subscribers.”
Subscribers claim T-Mobile, Deutsche Telekom AG and SoftBank Group Corp violate the Clayton Act and Sherman Act.
The subscribers want to represent a nationwide class of all persons or entities who paid for a Verizon or AT&T mobile wireless plan on or after April 1, 2020.
They demand a jury trial and request declaratory relief along with treble damages for themselves and all Class Members.
In related news, earlier this month, T-Mobile, Sprint and Verizon deployed vertical location technology to help 911 responders pinpoint the location of a call coming from a multistory building.
Have your wireless rates increased since the merger between T-Mobile and Sprint? Let us know in the comments.
The plaintiffs are represented by the Law Offices Of Kenneth N. Flaxman PC, Lieff Cabraser Heimann & Bernstein LLP, Berger Montague and Hausfeld LLP.
The T-Mobile and Sprint merger class action lawsuit is Dale, et al. v. Deutsche Telekom AG, et al., Case No. 1:22-cv-03189, in the U.S. District Court for the Northern District of Illinois.
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936 thoughts onT-Mobile class action claims Sprint merger costs Verizon, AT&T customers due to declining competition
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Add me please…..T Mobile should be ashamed of themselves
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Don’t understand how the merger of T-mobile & Sprint has caused AT&T and Verizon to not be competitive. T-Mobile’s pricing is the best in the industry, AT&T & Verizon don’t choose to compete and leave their plans high due to greed and name recognition. Blaming T-mobile for rival pricing is nuts. Change carriers
Agreed 100% This lawsuit should be tossed immediately as it lacks any merit whatsoever. If anything T-Mobile has been better since the merger. More offers for currently subscribed users instead of just so many when you add lines, etc. Lots of awesome promos, T Mobile Tuesdays, you name it. I honestly couldn’t ask for a better carrier. There’s some areas where signal gets lower, however in those areas if you report it to T-Mobile they usually do research it and add it to their list for expansions. They have also tweaked towers that were supposed to be providing signal in some places that weren’t because of placement issues etc. No carrier is without issue. It’s technology and there’s myriad components that can have an issue at any point disrupting service to an extent. But the fact is T-Mobile fixes those almost immediately in my experience.
In one room of our house we have metal studs and a firewall separating the garage. It is a dead zone for us. T-Mobile without even being asked said let’s get you set up with a signal extender for that room and sure enough back in business and have service here at no extra charge to us every month.
I have never had better customer service either. I strictly use their Facebook messenger method to contact them and get state of the art service every single time. They are absolutely awesome! So idk what this mess of a lawsuit is trying to allege. The company has gotten better and better as we go. Sure I miss John, everyone does. But the current CEO is pretty darn awesome too!
I don’t get this lawsuit either. How does the Sprint/T-Mobile merger make ATT and Verizon raise prices? Why am I able to have 2 lines unlimited data/talk/text for $70 with T Mobile plus the Tuesday deals etc, when Verizon was going to raise my rates for 2 GB shared data to $120 for 2 lines and unlimited data would have cost me a minimum of $140? And I’m not super worried about the whole data thing anyway because I don’t stream anything on my phone.