T-Mobile USA received a final judgment and permanent injunction against unauthorized companies that were reselling and trafficking T-Mobile prepaid phones and accessories.
The carrier received an order from a federal court in Brooklyn, N.Y., blocking DK Wireless, which does business as Wireless Touch and Talk 2 Me, IA Communication and the companies' principal, Ajay Mehta, from continuing to traffic in T-Mobile prepaid wireless phones. T-Mobile also said it received $5 million in damages.
The carrier said it regularly subsidizes phones to reduce costs, but said that the companies had been pocketing the subsidies, and preventing consumers from receiving the benefit of the subsidies. T-Mobile also said that the practice potentially misleads consumers about the cost of the phones from T-Mobile, since they still may carry the T-Mobile logo.
T-Mobile said has previously been awarded more than $9 million in other similar cases and has lawsuits pending across the country to stop the practice.
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