NEW YORK-A trio of law firms filed class-action lawsuits on behalf of investors against Sprint PCS affiliate Alamosa Holdings Inc. claiming the carrier violated Securities and Exchange Commission rules, including providing materially false and misleading statements regarding its customer growth based on low credit-worthy customers, which led to high involuntary disconnects and financial strain.
The suits added that Alamosa then tightened its credit standards, which resulted in lower customer growth that could not support the debt it carried from the increased churn from low-credit customers, resulting in a decline of the carrier’s stock price.
The law firms involved include Fruchter & Twersky L.L.P., Schiffrin & Barroway L.L.P., and Cauley Geller Bowman & Rudman L.L.P.
