Trials & Litigation
Sprint’s 30-Day Settlement Total Nears $150 M
Posted Sep 25, 2007 6:41 PM CDT
By Martha Neil
With a $57.5 million Kansas class action settlement just announced by Sprint-Nextel Corp., the company's settlement agreements in three cases during the past month now total nearly $150 million.
If approved by the judge in the case, the latest settlement would amount to only a small fraction of the $1.3 to $3.4 billion in losses claimed by the shareholders of two tracking stocks because of Sprint's decision to separate and then recombine them, reports the Associated Press.
"Johnson County District Judge Kevin Moriarty has given the settlement preliminary approval and has scheduled a hearing in December to consider giving it final approval," the article states.
Sprint reportedly would pay the first $10 million of the settlement, and insurance would cover the rest. The company continues to deny wrongdoing in the case, and said it made a business decision to settle because of the cost of the litigation.
Meanwhile, in two other settlements during the past month, according to AP, Sprint agreed to pay $57 million to settle discrimination claims of older workers who say they were illegally targeted in layoffs and $30 million to settle a suit claiming that it and AT&T overcharged customers for fees subsidizing rural phone service.
All told, the three settlements amount to $144.5 million.