Illinois' treasurer's office said it has filed a lawsuit against Sprint claiming the operator failed to pay $2.7 million in unclaimed rebates between 2003 and 2005, The Chicago Tribune reported.
The suit names Sprint as well as its partner Young America, a Minneapolis-based rebate clearinghouse. The companies kept promotional rebate proceeds from nearly 32,000 Illinois residents, the treasurer's office claims.
Sprint denied the allegation to the newspaper, saying the rebates weren't withheld but rather "were sent, but not cashed."
Young America is a 40-year-old rebate-processing company that redeems offers for other businesses. The suit alleges that the company was given funds to cover the rebate claims but could keep uncashed rebates, dubbed "slippage."
The suit also states that Young America has been barred from doing business in Illinois.
Dozens of other states have pursued Sprint and Young America over unclaimed rebates, the Tribune reported, and in 2010 the two companies reached a $22 million settlement with 36 states over rebates owed from 1999 to 2002.
For more:
- see this Chicago Tribune report
Related articles:
Sprint pays $131M to settle class-action lawsuit over Nextel merger claims
InPhonic sued over rebate complaints