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Tue Aug 18 13:18:17 2009 [Write for us] | [Login/Register]
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Sprint Nextel settles suit for $17.5M

Newark, N.J. -- Sprint Nextel said it will pay $17.5 million to settle a class-action lawsuit filed in federal court in New Jersey over early-termination fees.

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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