Sprint Nextel faces $1.2b class action lawsuit

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image Sprint Nextel is facing a possible class-action lawsuit over its early termination fees, with allegations that the company’s fee of $150 to $200 violates the Federal Communications Act – and relevant laws in every state in the United States. The lawsuit seeks to upgrade the case to a class-action status on behalf of all the customers.

The lawsuit previously asked for $73 million, with Sprint Nextel failing to appeal the decision; but now it will seek $1.2 billion after summing up all the costs from a ten year period (1998 to 2008). Sprint also should be shaking in their boots, as the lawsuit is being headed by Scott Bursor, a New York-based lawyer, and he has a track record of winning class-action lawsuits, including getting Verizon paying $21 million for a similar thing this year.

However, last month, the company announced a new policy regarding early termination fees. Under the new policy, the termination fee of $200 will decrease by $10 per month – in the sixth month of their contract.