WASHINGTON-A group of judges transferred seven billing lawsuits against Nextel Communications Inc. and Sprint PCS to a federal court in Missouri, a change of venue that could benefit the two national mobile-phone operators.
“On the basis of the papers filed and hearing session held, the panel finds the actions in this litigation involve common questions of fact and that centralization in the Western District of Missouri will serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation,” the U.S. Judicial Panel on Multidistrict Litigation stated in a Nov. 13 order.
Another 17 class-action suits against Nextel-which attack the disclosure of fees charged to recoup costs of federal mandates-likely will be directed to federal court in western Missouri. Sprint Corp. is headquartered in Kansas City.
The MDL ruling is a major victory for Nextel, which requested that the lawsuits be consolidated in the same Missouri federal court in Kansas City where preliminary approval already has been given to a nationwide settlement in the consumer suit. What is significant about that settlement-modeled after one that ended a billing lawsuit brought by Missouri Attorney General Jay Nixon-is that it requires greater disclosure of fees but provides for no restitution to consumers other than some free wireless minutes.
As such, Nextel’s settlement-if ultimately approved next year-would be far less costly than a settlement involving Verizon Wireless. The price tag of that settlement could top $1 billion, according to plaintiffs’ lawyers.
“We’re pleased that the court granted preliminary approval to the settlement. The court recognized and appreciated the diligence of the parties in pursing the settlement process and crafting a settlement that achieved broad-based support,” said Nancy Stark, a Verizon Wireless spokeswoman.
