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Sprint class action settlement overview:
- Who: Sprint agreed to pay $3.75 million to end a class action settlement with investors.
- Why: The investors allege they were misled by the company about the number of new subscribers it got.
- Where: The Sprint class action settlement was filed in a New York federal court.
Sprint will pay $3.75 million to end claims it misled investors about the number of new customers it gained.
Investor plaintiffs Isaac Solomon and Francine Canion filed a memorandum seeking approval of the class action settlement with Sprint Corporation Sept. 22 in a New York federal court.
In it, the telecom giant agreed to pay $3.75 million to resolve claims relating to Sprint’s growth reporting.
According to investors, Sprint’s stock price declined after a letter to the Federal Communications Commission was made public in April 2019, revealing that promotional lines, non-phone devices and customers moving from prepaid to postpaid services accounted for much of the company’s growth—not actual new customers.
The investors said Sprint and its executives led them to believe hundreds of thousands of new subscribers were added when, in reality, the numbers were largely caused by existing customers getting new devices and free phone lines.
Sprint finalized a merger with T-Mobile in April 2020.
Investors urge judge to approve proposed Sprint settlement
The stockholders urged Judge Vyskocil to grant approval of the settlement.
“The proposed settlement provides a cash payment of $3,750,000 for the benefit of the settlement class,” the memo states. “This is an excellent result given the significant risks of continued litigation. Moreover, after consultation with experts on damages, plaintiffs believe that the maximum damages that the settlement class could recover for the claims allowed to proceed to discovery … are approximately $30.3 million.”
The investors said the damages were fair considering they may not be able to prove that the entirety of the stock price drop was caused by fraud on Sprint’s part.
Lawyers for the investors told the court they plan to seek a fee award that does not exceed a third of the gross settlement fund.
Meanwhile, in June, a consumer filed a class action lawsuit alleging that 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.
What do you think of the Sprint class action settlement? Let us know your thoughts in the comments!
The plaintiffs are represented by Omar Jafri, Patrick V. Dahlstrom and Brian P. O’Connell of Pomerantz LLP.
The Sprint settlement is Solomon et al. v. Sprint Corp. et al., Case No. 1:19-cv-05272, in the U.S. District Court for the Southern District of New York.
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12 thoughts onSprint settles investor class action over subscriber growth for $3.75M
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I had The Same thing Happen to me and I was with Sprint for 14-15 Years I believe. They Took Money out of My Account without me Knowing and I even had to Pay My Bank for Overdraft Fee’s so many times. I work a lot (I am a PCA and I take Care of People which I Absolutely Love doing) so I never really checked but when I did.. Omg I couldn’t believe how much they robbed me. I also called them because I had phones that were paid off and which were My kids and they went somewhere else. I talk to Everyone at Sprint even the Supervisor and Everything. They didn’t five any money back they kept charging for the phones that were paid off and Now I left and they keep sending me a Bill for Over 2 thousand Dollars. On top of that they Switched me to T-Mobile without My Consent. If I wanted T-mobile Service I would have Switch to them On My own. I have been so Stressed out and I called and talked to so many people on so many days and I got Nowhere! Please ADD ME. I was looking to see if there was a Class Action Lawsuit Against Them that’s How I found this! Please Help. ADD ME!! Thank you and I’m So Very Sorry You are Going Through This Too!!
Hello, To Whom it concerns. My name is Nicholas Benike and I have had quite the experience with Sprint! There have been 4 felonious charges that they refuse to address and make good on. The first charge occurred when a Sprint store allowed an individual other than myself to purchase $1,100.00 on my account through one of their physical stores. When I refused to pay they cancelled my service. After speaking with a representative they told me I would be reimbursed but it would take awhile. So I paid the $1,100.00. Then approximately 3months later it happened again for the amount of $1,400.00. I was in the same situation and needed to pay the balance in order to keep my service, with reimbursement being promised at a later date. I have yet to be reimbursed. That was back in 2017 and after hundreds of hours on the phone, they have ignored all attempts to put me bak to whole. In 2018 I purchased an iPhone 10 with a modified payment plan. Instead of $34/mo for 24 months, I agreed to $200 down and $100/mo for 11months. They charged me the entire 24 months! Again, every time I called to seek my money back or even credit, they ignored all attempts. That is a total of $3,700.00+. They did however give me a so-called “Free Line” that they started to bill me $50.00/mo for. They activated that charge/line in Jan 2021 and I realized in July. On July 26th I called and demanded reimbursement and cancellation of so-called free line. They issued me that I would not be billed again. Last month I realized they had continued to bill me and never cancelled as promised. At least another 14mos($700)(21mos total)($1,050- $350 credit over 10/mos). Currently I am refusing to pay any bill until they resolve some of these issues. I have well over 100hrs, probably closer to 200 hours on the phone with Sprint, they continue to disconnect my service and I am forced to call to get reinstated as I patiently wait for upper management to get back to me with a resolution. This is a very easy case. If one rep would spend 20mins looking at my past bills they would see how much they have over charged me. Please help! I would like to sue for compensatory damages as well as punitive. Including all attorney fees and my full scale union wages or more for every hour I have spent trying to resolve this. Not to mention the inconvenience and loss of wages and clients for service disruptions. In the precious metals business, if your phone is disconnected, that client will never attempt to call you again. Thanks in advance!
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