| Company: | Sprint Nextel |
| Ticker Symbol: | S |
| Class Period: | Oct-26-06 to Feb-27-07 |
| Date Filed: | Mar-10-09 |
| Lead Plaintiff Deadline: | May-9-09 |
| Court: | District of Kansas |
| Allegations: | |
According to the complaint Sprint Nextel Corporation ("Sprint Nextel") and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between October 26, 2006 and February 27, 2008 materially false and misleading statements regarding the its business and financial results and as a result of defendants' false statements, Sprint Nextel stock traded at artificially inflated prices.
In December 2004, Sprint Corporation and Nextel Communications ("Nextel") announced that they would merge. The merger was completed on August 12, 2005, with Sprint Corporation buying Nextel for $37.8 billion. The merger, so the lawsuit alleges, turned out to be a disaster, as Sprint Nextel Corporation has had difficulties in combining the resources of the 2 companies due to culture clashes and technological issues. But the defendants were repeatedly assured between October 26, 2006 and February 27, 2008 that Sprint Nextel was poised for a turnaround and was focused on improving its core operations.
As late as the summer of 2007, defendants continued to play down and conceal Sprint Nextel's problems with its network and with its customer service issues and subscriber base. Beginning in early Fall 2007, Sprint Nextel finally began to acknowledge that its initiatives were not working and that Sprint Nextel was experiencing a serious deterioration in its subscriber base, due both to a slow down in new growth and a massive defection of its current subscribers to its competitors.
On February 28, 2008, before the market opened, Sprint Nextel reported disappointing fourth quarter and full year 2007 financial results, including a net loss for the quarter of $29.5 billion or $10.36 diluted loss per share and on this news, Sprint's stock collapsed $0.86 per share to close at $8.09 per share, so the lawsuit.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
