Sprint investors awarded class action status in Nextel merger suit

Investors claim that Sprint and former CEO Gary Forsee illegally inflated stock prices

In 2005, Sprint Corp. merged with fellow mobile phone giant Nextel, creating one of the world’s largest mobile companies. However, some Sprint investors believe they were misled about the financial impact of the merger, and after a court’s ruling, they now have the ability to bring a class action lawsuit.

U.S. District Judge Eric Melgren in Kansas City ruled on March 27 that an investor lawsuit against Sprint and former CEO Gary Forsee may proceed with class action status. In the lawsuit, investors claim that Sprint and Forsee misled investors by inflating stock prices following the merger.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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