Sprint Settles Lawsuit Over Nextel Merger for $131 Million
Sprint today settled a class-action lawsuit regarding its 2005 acquisition of Nextel for $131 million. Investors claim Sprint executives defrauded shareholders by inflating stock and bond prices after Sprint closed its acquisition of Nextel. The merger was troubled from the start, as Sprint struggled to integrate the two companies and lost hundreds of thousands of Nextel subscribers. At the same time, executives claimed the company was receiving billions of dollars in benefits and improving its subscriber base. Sprint was eventually forced to write down $29.7 billion in lost value. The company did not admit to any wrongdoing, but agreed to pay out $131 million. The settlement still needs to be approved by the court.
Sprint to Face $300M Tax Fraud Charge In Court
Sprint lost its bid to have a $300 million lawsuit dismissed and will now face the State of New York in court. The office of New York Attorney General Eric Schneiderman alleges that Sprint failed to collect about $100 million in taxes from its New York-based customers over a period of seven years.
AT&T Finalizes Nextel Mexico Acquisition
AT&T today said it has completed its acquisition of Nextel Mexico. Nextel Mexico covers 76 million customers across the country.
SoftBank Invests Another $73 Million in Sprint
SoftBank has purchased yet more shares of Sprint stock, boosting its stake in the company to just over 80%. SoftBank shelled out $73 million for about 16.8 million shares.
Sprint Touts Network Progress
Sprint today offered a snapshot of the progress it has made deploying LTE around the country. According to its fourth quarter earnings, Sprint's LTE network now reaches 270 million POPs, up from 260 million in the previous quarter.
Sprint Allowed to Settle Cramming Charges for $50M
Sprint has settled accusations with the Consumer Financial Protection Bureau that it over-billed customers for unwanted services. In May, the FCC fined Sprint $68 million for adding third-party services to customer bills without customer permission — a practice known as cramming.
Seems like a pretty small settlement...
They sure didnt want Sprint though, and especially not after Sprint screwed up everything they previously had and then wanted them to rerun credit for Sprint CDMA lines (that sucked).
What a waste, Nextel was bomb. Only if you knew other people with nextel of course, but nothing beats pushing the button and saying "what do you want?" No latency, unlike the recent crap PTT they all push, and great inbuilding coverage, crap data but the real problem was most people had old phones....
In the nine years since Sprint took over Nextel, I have yet to have a single satisfying customer experience with Sprint, at any level. Contrast that with all of my customer experiences with Nextel, which (a) always had a genuine, ...