Sprint faces $1.2B federal suit over early termination fees

Sprint Nextel faces a $1.2 billion federal class-action lawsuit because of early-termination fees the company charged. In July, a California state court ruled that Sprint must refund $73 million to affected customers. That ruling is not yet final. Earlier this month, Sprint began pro-rating the penalties charged to new or renewing customers who cancel contracts early. Scott Bursor, who represented the plaintiffs in California, fills the same role for the federal class-action suit, filed Oct. 29 in a U.S. District Court in California. The lawsuit alleges that the $150 to $200 fees violated the Federal Communications Act and laws in every state, and says the fees from 1999 to present total about $1.2 billion.