Sprint Nextel Corporation In $19 Million Settlement On Cellphone Charges-Reuters

Reuters reported that Sprint Nextel Corporation has entered into a $19 million settlement to resolve a lawsuit by U.S. customers who accused the money-losing mobile service provider of improperly charging them for using their cell phones to send pictures. The settlement resolves claims by customers nationwide with unlimited Everything Messaging plans who accused Sprint of failing to tell them about the charges, or how to properly use their phones and avoid unnecessary charges. According to papers filed with the U.S. District Court in Newark, New Jersey, Sprint denied wrongdoing, but agreed to settle to avoid the burden and expense of litigation. Sprint would pay $3 million to fund cash payments and administrative costs, and lawyers for the customers would receive up to $3.5 million. The settlement requires court approval. A hearing to consider preliminary approval is scheduled for July 16 before U.S. District Judge Susan Wigenton. The case is Eoff et al v. Sprint Nextel Corp et al, U.S. District Court, District of New Jersey, No. 10-01190.