WASHINGTON-Nextel Communications Inc. and Sprint PCS are facing unprecedented billing litigation, a legal challenge Nextel brought to the attention of the Securities and Exchange Commission in a filing last month.
Nextel is a defendant in seven class action billing lawsuits. The cases are pending in federal courts in California, Florida, Missouri, Pennsylvania and Tennessee.
In July, Nextel and Sprint PCS settled a lawsuit with the Missouri attorney general on how they break out taxes and fees related to federal mandates on consumer bills. But the carriers’ problems did not end there.
Consumers also have sued Sprint PCS for alleged billing misrepresentation in Florida, Missouri, Ohio and Tennessee. In total, 11 class action suits are in play against one or the other mobile-phone operator.
On Oct. 9, a federal judicial panel here will hear oral argument on requests by Nextel and Sprint PCS to consolidate the suits in the U.S. District Court for the Western District of Missouri.
A Nextel spokeswoman declined comment.
Sprint PCS has a policy of not discussing active litigation.
The mobile-phone industry is attempting to head off additional litigation and state regulation by adopting a voluntary code of conduct. The plan will be unveiled here next Tuesday. At the same time, 20 state attorneys general are contemplating whether to take legal action against industry to force carriers to revise advertising, billing, contract terms and other business practices.
