Cellular Store Charges T-Mobile With Unfair Business Practices Following Merger with Sprint

A cellular franchise owner has sued T-Mobile in U.S. District Court in Connecticut for “fraudulent, predatory, and anti-competitive conduct.” Saying it was one of the top Sprint, then T-Mobile, dealers in the country, plaintiff Solution Center Inc. contends the wireless giant “systematically dismantled its business.”

Solutions Center, LLC v. T-Mobile USA, Inc., et al., No. 3:22-cv0000235-JCH, D. Conn, New Haven Div.

Using “intentional concealment” of facts and “wrongful duress,” Solution Center says it expanded its operations based on Sprint’s assurances prior to the merger. After the merger T-Mobile informed the retailer that it was closing or taking over a third of its stores.

Causes of action listed in the complaint include fraudulent inducement, negligent misrepresentation, and violation of the franchise and unfair trade practices acts of Connecticut and Washington, where T-Mobile is headquartered.

T-Mobile was already drawing criticism after merging with Sprint for degrading what some said was excellent customer service that Sprint customers loved. Some critics blamed the exit of its pro-customer CEO John Legere for the drop in consumer satisfaction. Customer service expert Shep Hyken, told Bloomberg in December 2021 that, “With mergers, you don’t know which culture will take hold, but typically the one with the worse culture tends to pull the other one down.”

Edited by Tom Hagy for MoginRubin LLP

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