The bulk of the settlement, $14 million, will go to cash payments to claimants, while $3.5 million will go to non-cash benefits, The Kansas City, (Mo.) Star reported Wednesday.
The suit claimed Sprint overcharged early-termination fees from 1999 through 2008. The overcharges amounted to $1.2 billion, the suit said.
Sprint also agreed to switch to a pro-rated termination fee structure, allowing customers who are closer to the end of their contracts to pay less in termination fees than customers who opt out earlier.
The settlement requires a hearing before it is finalized. One is scheduled for Oct. 21, the Star reported.
Copyright 2009 by United Press International.
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