A Cook County, Ill., judge has refused to dismiss a lawsuit filed by wireless affiliate iPCS against Sprint Nextel. The judge has decided to allow the lawsuit to proceed, denying Sprint's efforts to halt or stay the suit. The lawsuit claims Sprint's joint venture with Clearwire and its agreement to build a nationwide mobile WiMAX network violates exclusive agreements iPCS had with Sprint.
This is not the first lawsuit for the two companies. In July, a Delaware court ruled Sprint could go ahead and determine whether the deal violates exclusivity agreements, and removed two iPCS subsidiaries from the suit. The companies also were involved in a legal battle in 2006 when an Illinois court ruled Sprint Nextel's operation of Nextel's network in iPCS' region violated non-compete terms.
Sprint spokesman Mike Sullivan said the ruling was not unexpected. "And we're confident that both Illinois Circuit Court and Delaware Chancellery Court will render reasonable rulings based on a careful review of the specific issues involved in this matter." He also said the legal action in Illinois itself by iPCS was not unexpected since it was in reaction to Sprint's own move in Delaware.
For more:
-see this AP report [1]
Related articles:
Sprint [2] affiliates battle Clearwire JV
iPCS [3]sues Sprint Nextel over Clearwire deal
Links:
[1] http://biz.yahoo.com/ap/080916/sprint_ipcs_lawsuit.html?.v=2
[2] http://www.fiercewireless.com/story/sprint-affiliate-battles-clearwire-jv/2008-07-16
[3] http://www.fiercewireless.com/story/ipcs-sues-sprint-nextel-over-clearwire-deal/2008-05-12