Sprint Nextel affiliate iPCS is asking an Illinois court to block the wireless provider’s planned acquisition of Virgin Mobile USA. Three subsidiaries of Illinois-based iPCS filed the lawsuit in the Circuit Court of Cook County, seeking an injunction to stop the $483 million deal. They claim it would violate an agreement by Sprint not to compete against iPCS within its territories. iPCS sells Sprint-branded products and services within the Midwest, said Associated Press. “This is now the third time in four years that Sprint has attempted to unlawfully compete against and cannibalize its own affiliates,” the lawsuit states. Matt Sullivan, a spokesman for Kansas-based Sprint, said the company was fighting the lawsuit. “We think the claims are without merit,” he said. Sprint and iPCS have battled in the courts before over Sprint’s 2005 acquisition of Nextel Communications and last year’s deal with Clearwire to provide high-speed wireless Internet services — also under the claim that they violated the exclusivity agreement. A Cook County judge agreed with iPCS on the Nextel deal, ordering Sprint to cease operating its Nextel network in iPCS’ markets. Sprint announced in June that it planned to turn over ownership and operation of its Nextel-branded network in parts of Illinois, Iowa, Michigan and Nebraska.
Sprint Affiliate iPCS Sues Over Virgin Deal
Three subsidiaries of Illinois-based iPCS filed the lawsuit in the Circuit Court of Cook County, seeking an injunction to stop the $483 million deal.
September 15, 2009