Sprint Nextel gets sued by iPCS over Clearwire Transaction

May 12, 2008 | ghengis | Comments 0

iPCS, Inc. the largest independent Affiliate of Sprint Nextel, announced today that three of its subsidiaries filed a complaint in the Circuit Court of Cook County, Illinois against Sprint Nextel and certain of its related entities. In its complaint, iPCS claims that:

Sprint Nextel’s recently announced WiMAX transaction with Clearwire Corporation would breach the exclusivity provisions of IPCS’s affiliation agreements with Sprint Nextel; and
Sprint Nextel is attempting to evade a judgment of the Circuit Court of Cook County, Illinois, relating to the Sprint-Nextel merger, which has been unanimously affirmed by the Illinois Appellate Court and which requires Sprint Nextel to cease owning, operating and managing the Nextel network in iPCS Wireless’s territory.

iPCS is seeking a declaratory judgment that Sprint Nextel’s consummation of the recently announced Clearwire/WiMAX transaction, and its plan to compete against iPCS, will breach the iPCS agreements with Sprint Nextel. iPCS is asking the Court for a permanent injunction enjoining Sprint Nextel and those acting in concert with it from consummating the WiMAX transaction until such transaction has been modified to comply with the iPCS agreements with Sprint Nextel.

iPCS noted that it has been involved iPCS believes that Sprint Nextel’s recently announced WiMAX transaction is yet another attempt by Sprint Nextel to breach the exclusivity provisions of the iPCS affiliation agreements. iPCS intends to fully and aggressively protect and defend its exclusivity rights.

Keep in mind that i PCS is in litigation with Sprint Nextel for nearly three years about the exclusivity provisions of its affiliation agreements, and has repeatedly won significant court victories. So they have the upper hand of winning this case as well. So long Sprint