T-Mobile and Sprint finally reached their merger agreement in April 2020, after two years of negotiations with regulators and investors. Large company mergers often lead to fewer available jobs and branch closures, and now (at least) four former Sprint authorized dealers are suing T-Mobile for alleged anti-competitive and predatory practices.

Several former authorized Sprint dealers have filed lawsuits against T-Mobile, at least three of which have requested a jury trial. Absolute Wireless (South Carolina), Solutions Center (Connecticut), Wireless Express (Tennessee) and Maycom (Florida) all allege that T-Mobile began to reduce its number of authorized resellers after its acquisition of Sprint, forcing these companies to close stores and laying off employees. T-Mobile also closed many former Sprint stores (and some T-Mobile locations) throughout 2020 because many of those stores were in close proximity to each other.

One of the companies wrote in its lawsuit, “Absolute Wireless is bringing this action to recover the pattern and practice of predatory business practices from T-Mobile and Sprint that destroyed Absolute Wireless’ business as an authorized reseller of mobile services and products, ultimately forcing the directors of Absolute Wireless to sell his company after successfully running it for 22 years. Absolute Wireless alleges that T-Mobile terminated its old Sprint contracts and would not allow the company to sell products and services unless it signs “adverse unilateral contracts.”

Maycom said in its complaint that T-Mobile had “unlawfully devastated” the company, adding: “When the dust settled, of the 63 stores Maycom once owned, there were only 28 left for sale at a depressed value created by T-Mobile, 4 were given a one-year limited lease renewal to operate and 31 stores were closed by T-Mobile.

The companies are seeking damages for lost revenue and store closures. T-Mobile has yet to publicly comment on the lawsuits, but according to Justia’s filing information, T-Mobile and Sprint Solutions, Inc. have begun filing required disclosure statements.

Source: Justia (1, 2, 3, 4), Internet Archive, Fierce Wireless
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