T-Mobile is currently facing a class action suit brought by individually-owned T-Mobile stores, which claim that the carrier did not fulfill the promise of opening new retail stores following its merger with Sprint. Instead, it allegedly bought up minority-owned locations for little to no compensation. The stores and T-Mobile recently met in an attempt to reach a mediated agreement but were unsuccessful.
As per the suit, T-Mobile is accused of conspiring with national T-Mobile retailer and Master Dealer Arch Telecom to close or buy the minority-owned T-Mobile stores without adequate compensation. The lawsuit seeks $100 million in compensatory damages and $1 billion in punitive damages plus attorney fees.
The complaint alleges that T-Mobile and Arch Telecom controlled various aspects of the plaintiffs’ business and quotes former T-Mobile CEO John Legere’s claim that the carrier would open hundreds of new stores following the merger with Sprint. Additionally, the suit alleges that T-Mobile attempted to create an “artificial termination date” to gain an advantage during contract negotiations with plaintiffs.
According to the lawsuit, the merger between T-Mobile and Sprint was anti-competitive and cost U.S. small businesses and AT&T and Verizon subscribers billions of dollars.
