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National Wireless Independent Dealer Association

T-Mobile Sued by AT&T / Verizon Customers

Sprint / T-Mobile Merger (NWIDA)A group of AT&T and Verizon subscribers have filed a class-action lawsuit, claiming the T-Mobile/Sprint merger “combined two fierce competitors into a single behemoth with no incentive to compete meaningfully” against the “equally large” Verizon and AT&T. 

They claim it was always T-Mobile’s long-term plan to merge with another wireless carrier to create “the best path to extracting every possible cent from American consumers and small businesses.”

At the time of the merger, 14 states (and Washington DC) sued to stop the deal, arguing that the merger would reduce competition and result in at least $9 billion worth of harm to consumers each year.

In the claim it’s stated that after the lawsuit from the states failed to stop the merger, T-Mobile and Sprint would merge to become “a single large competitor that is more than happy to observe a competitive détente in return for stable market shares and prices.” 

They argue competition has “declined precipitously” and that quality-adjusted prices have inflated since T-Mobile, AT&T and Verizon have “no reason to compete as vigorously for subscribers.” 

THey are claiming that T-Mobile, and parent company Deutsche Telekom – and former Sprint owner SoftBank Group, violate the Clayton Act and Sherman Act. The subscribers want to represent a nationwide class of all persons or entities who paid for a Verizon or AT&T mobile wireless plan on or after April 1, 2020 – and demand a jury trial and request declaratory relief along with treble damages for themselves and all Class Members. 

 
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