Subject: [NEXTEL-1] Nextel billing lawsuits consolidated, transferred to Kansas City

From: [email-masked]
Date: Mon, 17 Nov 2003 19:55:37 -0500

Nextel billing lawsuits consolidated, transferred to Kansas City
By Jeffrey Silva
November 17 13:31:00, 2003

WASHINGTON—A group of judges transferred seven billing lawsuits against Nextel
Communications Inc. and Sprint PCS
to a federal court in Missouri, a change a venue that could benefit the two
national mobile phone operators.

“On the basis of the papers filed and hearing session held, the panel finds the
actions in this litigation involve common questions of fact and that
centralization in the Western District of Missouri will serve the convenience of
the parties and witnesses and promote the just and efficient conduct of the
litigation,” the U.S. Judicial Panel on Multidistrict Litigation stated in a
Nov. 13 order.

Another 17 class action suits against Nextel—which attack the disclosure of fees
charged to recoup costs of federal mandates—likely will be directed to federal
court in western Missouri. Sprint Corp., parent firm of one the wireless
defendants, is headquartered in Kansas City.

The MDL ruling is a major victory for Nextel, which requested that the suits be
consolidated in the same Missouri federal court in Kansas City where preliminary
approval already has been given to a nationwide settlement in the consumer
suit.  What is significant about that settlement—modeled after one that ended a
billing lawsuit brought by Missouri Attorney General Jay Nixon—is that it
requires greater disclosure of fees but provides for no restitution to consumers
other than some free wireless minutes.
As such, Nextel’s settlement—if ultimately approved next year—would be far less
costly than a settlement involving Verizon Wireless. The price tag of the
settlement could top $1 billion, according to plaintiffs’ lawyers.

“We’re pleased that the court granted preliminary approval to the settlement.
The court recognized and appreciated the diligence of the parties in pursing the
settlement process and crafting a settlement that achieved broad-based support,”
said Nancy Stark, a Verizon Wireless spokeswoman.
http://rcrnews.com/cgi-bin/news.pl?newsId=15965

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