Notice and Information To Customers Re: Early Termination Fee Settlement And Litigation
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California Litigation: Sprint Spectrum, LP is a defendant and cross-complainant in a California class action in the Superior Court of California, County of Alameda, referred to as Ramzy Ayyad, et al., vs. Sprint Spectrum, L.P., Case No. RG03-121510. The Court issued a Statement of Decision on December 4, 2008. The Statement of Decision found in favor of the plaintiffs on their claims, and in favor of Sprint on its cross-claim, determined that Sprint's cross-claims were larger than plaintiffs' claims, and ordered that plaintiffs recover no money damages. The Court also ordered that for those class member accounts still in possession of Sprint who were charged an ETF before March 18, 2007, Sprint must reverse the charges for any unpaid flat ETF and is enjoined from attempting to collect the unpaid flat ETF on terminated lines of service. For those class member accounts sold by Sprint to third parties, Sprint must inform the third parties of the Court's order, but third parties are not bound by the order.
This case does not impact current lines of service or current customers if you are not otherwise a class member in the above case (California CDMA consumers and certain post-merger California iDEN consumers charged a flat ETF through March 18, 2007 ). Please refer to case filings for a complete history of the case, including orders and class definition, or contact class counsel. Our service contracts with our customers remain valid, and Sprint Nextel is enforcing the ETF provision where applicable. Customers who choose to terminate their service contract early, and break their term commitment to Sprint Nextel, will have an ETF per line, applied to their account if the service contract was entered before 11/2/08. Service contracts with begin date after 11/2/08 are subject to Sprint Nextel’s prorated policy. ($200 through month 5 of contract, decreasing $10 a month until $50 minimum applies to remaining terms.)
National Settlement (Larson, et al. v. Sprint Nextel, et al., Case No. 2:07 CV 05325 (USDC NJ)):
- A national settlement has been reached by Sprint Nextel regarding Early Termination Fees.
- The national settlement applies to all states, including California, although the claims brought in the California Ayyad case, referenced above, are currently excluded from this settlement.
- The settlement does not apply to Corporate or Public Sector accounts
- The settlement Applies to customers who entered a contract with Sprint between 7/1/99 and 12/31/08, with a flat rate ETF provision in the contract.
- The federal judge granted Preliminary Approval of the settlement on 12/5/08.
LEGAL NOTICE
Judy Larson, et al. v. Sprint Nextel Corp., Sprint Spectrum, L.P. and Nextel Finance Co.,
Case No.: 2:07-cv-05325-JLL-ES (USDC, DNJ)
THIS NOTICE PROVIDES LIMITED INFORMATION ABOUT A CLASS ACTION SETTLEMENT.
Your rights may be affected by a proposed class action Settlement of claims against Sprint, Nextel and/or Sprint Nextel. The Settlement would resolve lawsuits in which plaintiffs allege that the Sprint, Nextel and/or Sprint Nextel flat rate early termination fee ("ETF") is illegal or was illegally charged. Plaintiffs brought this suit on their own behalf and on behalf of all Sprint, Nextel or Sprint Nextel subscribers who entered into a personal fixed-term subscriber agreement for a Wireless Service Account for personal or mixed business/personal use, with Sprint, Nextel and/or Sprint Nextel between July 1, 1999 and December 31, 2008. Sprint Nextel denies the allegations. Sprint Nextel has agreed to pay $14 million into a common fund to be distributed pursuant to the Settlement benefit rules set forth in the Settlement Agreement. Sprint Nextel has also agreed to provide qualified Settlement Class Members up to $3.5 million in Non-Cash Benefits. Sprint Nextel has also agreed to not insert a flat-rate ETF provision into its customer service agreements for personal wireless service in the U.S. until January 1, 2011, but may charge a pro-rated ETF during this time period. The Settlement will release all claims that customers may have against Sprint, Nextel and/or Sprint Nextel relating in any way to its flat-rate ETFs and term contracts, and will bar future claims, unless the individual excludes him/herself from the Settlement. To receive a benefit under the Settlement, you must timely complete and submit a Claim Form. You may obtain complete information about the Settlement (including a Long Form Notice) and a Claim Form, and information about deadlines, by visiting sprintetfsettlement.com, telephoning 1-800-916-6940, or writing the Sprint ETF Settlement Administrator, c/o Gilardi & Co., PO Box 6002, Larkspur, CA 94977-6002.
This settlement does not apply to Government or Corporate Accounts.
IF YOU DO NOT WISH TO BE PART OF, OR IF YOU WISH TO OBJECT TO, THIS SETTLEMENT, you may exclude yourself or file an objection with the Court. To exclude yourself, you must mail a Request for Exclusion Form, postmarked no later than October 7, 2009 to Sprint ETF Settlement Administrator, c/o Gilardi & Co., PO Box 6002, Larkspur, CA 94977-6002. If you do not submit a written Request for Exclusion, you will be bound by the Final Judgment entered in the class action. To object to the settlement, you must file an objection with the Court by no later than October 7, 2009. The Court, located at 50 Walnut Street, Newark, New Jersey, will conduct a hearing on whether to approve the Settlement, and if so, will determine what fees and expenses should be awarded to class counsel. The hearing is presently scheduled for October 21, 2009, but may be changed. Any Settlement Class Member may enter an appearance with the Court through an attorney. If you have already submitted a claim form, or excluded yourself from the Settlement, you need not take any further action.
To learn more about the settlement, visit sprintetfsettlement.com or call 800.916.6940 for additional information. Please do not contact the Court or Sprint.
To view the settlement Notice, click here.