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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
They made me merge over to sprint now my bill is sky high and they still have not gotten it right and I turned in for phones this is ridiculous
I’m a Verizon wireless customer and my bill went up significantly due to the merger
I was a Sprint customer and then we had to go to T-Mobile and then when we went to T-Mobile I’d never got any phone calls I always losing and dropping calls worst Carrier ever that’s why we switched I’m so glad cause now I can get phone calls no phone call drops no robo calls no shit add me to
I owned prepaid sprint stores for 15 years … sprint was constantly a loser in investment in new technology and they showed it on there books losing 1 billion annually for over. A decade …. T-Mobile is a better company and cares about there customer base and it shows in there ability to attract 1 million net subscribers for that same decade where sprint was losing money … great job T-Mobile !!!
Naw they don’t have plans to help us like sprint and with t mobile you can’t use the phone right always gotta go outside or wait for it to rain when it doesn’t rain in the area just around us they have some wicked things going on
If I were the judge hearing this case, it would be immediately thrown out on the grounds of it being absolutely ridiculous. The truth is that Sprint and T-Mobile would never have been able to compete as small, standalone companies. Now, they’re cutting into the Duopoloy’s cashflow, and they’re crying foul. Mergers aren’t always good, but this one was needed to offer real competition and network choice to consumers.
AT&T and Verizon: go and build better networks rather than wasting your time in court crying because you’re no longer the top dogs anymore. It’s especially embarrassing for you that you’ve employed other people to fight that losing battle for you.
FYI Verizon does and always has had a better network than any other carrier because they invest more in their network than any other carrier. Instead of investing in silly gimmicks or giveaways like those Pink guys they invest in what their customers pay for SERVICE you know the ability to use your device.
You kidding? Their service is the worst, cell and landline… They don’t invest, they do patch up jobs, and don’t care cuz they WERE so big and have idiots who still use and defend them.
LOL, WRONG… AT&T and Verizon are in a SPECIAL radio bandwidth that gives them a slight advantange. They have a slight greater range from cell to tower than T-Mobile/Sprint. This forces T-Mobile to have to add more towers or “rent” more towers. Regardless. AT&T rules in OUR AREA, which could be differnt for you. Verizion may be better in yours. Also, one last point. The phone you use has a MAJOR impact on your service. Some phones belong in the trash can as they just don’t have the capabilities to connect to strong signals in the area. Old phones.
Verizon had an advantage for a long time because of their low band spectrum (band 13/700mhz) and their propensity to buy out other regional carriers like Alltel. They had a national footprint (along with ATT) far longer than smaller carriers at the time like T-Mobile who had no lowband and a far smaller network. 10 years ago data usage wasn’t as big as it is now, so Verizon didn’t really have to invest much in capacity/midband. Instead of doing their due diligence and projecting how much data usage would be in the coming years, they wasted their money on moronic purchases like Go90 and they even could have disrupted T-Mobile’s rural plans by investing money in the band 71 (600mhz) auction a few years back.
Verizon is now a congested mess (granted their rural coverage is still pretty good), but they can’t deploy most of their N77 until the middle of next year at the earliest and they’re bleeding subscribers. They’ll have to build more sites because of C-band’s lack of reach compared to N41 on T-Mobile.
This isn’t me defending T-Mobile by any means, as they’re just another bloodsucking corporation that only cares about profits, but watching people defend Verizon is nauseating. They’ve made countless terrible decisions over the past decade and their network advantages boiled down a lot to simply being there first.
I have been with T-Mobile 18yrs. They are always on my side. No doubt they are the best cell phone service provider. Call see for yourself!
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