A lawsuit against Sprint Communications has been filed by a group of shareholders of the combined company. The suit is scheduled to end in the third quarter of 2021. Upon the acquisition of Sprint by SoftBank, several lawsuits popped up as lawsuits were litigated over competitive issues. So, Sprint decided to purchase the remaining partner companies which set off the lawsuits once again.
Sprint has yet to comment on the lawsuit claims.
However, SoftBank released a statement saying they are “committed to a process of dialogue with Sprint in order to find a resolution to the ongoing conflict between the two companies. We believe this is in the best interest of all our stakeholders including our investors.” No one is yet calling the shots as lawsuits have been filed in California and New York.
Some say it’s good that Sprint purchased SoftBank as it was not only able to help them move forward, but also acquire another company at a much better price.
One lawsuit filed by an investor claimed that SoftBank had promised a certain amount of profits for investors even if the company tanked. This could be a violation of anti-trust laws, something Sprint is surely aware of. Also, Sprint did not receive public comment on the lawsuit. They could not be reached for comment either.
In the past, lawsuits against companies like Sprint have led to counter suits from the other company.
It was so viciously competitive that they needed to settle the lawsuits out of court. Then, lawsuits were brought about by competitors who felt the companies had been too cozy together. This kind of thing usually does not end well for the buying company.
In the world of business, lawsuits can be a part of the game.
Many of the world’s major corporations fight lawsuits like Sprint. They are banking on the fact that lawsuits are expensive to litigate. They do not want to lose business because of a frivolous suit. For this reason, they often settle lawsuits in hopes of avoiding a long and expensive court battle.
Sprint did not respond to our inquiry for comment on this article.
They did post a news item on their corporate blog. Their current market value is around $30 per share, which makes them a safe investment for any shareholder. We will monitor their business very closely and keep you informed of any developments.