In 2020, T-Mobile closed a deal to buy Sprint for $26 billion. Now an order from the Seventh U.S. Circuit Court of Appeals has denied T-Mobile’s request to stop a class-action lawsuit over the merger.
The plaintiffs have argued that the merger is driving up the price of wireless services because it reduced market competition.
If successful, the lawsuit is seeking billions of dollars in damages and the plaintiffs want the courts to force T-Mobile to spin off Sprint from T-Mobile again.
This case could take years to resolve as both sides fight over damages and how to prove prices wouldn’t go up even if the merger didn’t happen.
Part of the deal to approve the merger of Sprint and T-Mobile was the sale of Boost Mobile to DISH. This sale made DISH the fourth-largest provider of wireless services. There are also a growing number of new options for wireless especially with the growth of cable TV companies like Comcast and Spectrum offering discounted plans.
Now this case will go forward in the hands of the courts, and they try to figure out if real harm has been done to the American consumer.
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