Judge dismisses most of Sprint’s case against AT&T

If the glove don't fit...

A U.S. Federal judge has dismissed most of Sprint’s lawsuit that challenges AT&T’s proposed $39-billion acquisition of T-Mobile USA, but did not throw out the entire case. The judge did allow Sprint to continue to proceed with claims that a post-merger AT&T along with Verizon (VZ) would make it harder for other wireless companies to obtain the most sought after wireless devices. The judge called wireless devices Sprint and C-Spire’s, who filed the lawsuit with Sprint, “first-run movies.”

Sprint’s other claims, including allegations that AT&T and Verizon and Vodafone would raise costs for roaming and infrastructure, were dismissed. While the majority of Sprint’s legal actions were dismissed, the ruling likely will allow Sprint access to confidential AT&T legal filings.

Commenting on the outcome, one Sprint executive said the company is “pleased that the court has given us the chance to continue fighting to preserve competition on behalf of consumers and the wireless industry.” AT&T’s general counsel said the ruling dismisses “the vast majority” of Sprint’s claims and that the “minor claims they have left are entirely without merit.”

AT&T (T : NYSE : US$29.44), Net Change: 0.36, % Change: 1.24%, Volume: 19,860,596
Sprint Nextel (S : NYSE : US$2.81), Net Change: 0.09, % Change: 3.31%, Volume: 67,296,027

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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