T-Mobile Sued Amid Merge with Sprint
While T-Mobile, a unit of Deutsche, is in the process of trying to win approvals to merge with Sprint, New York City sues the firm on Wednesday. And they accused the mobile phone company of being involved in rampant sales abuses of customers for its lower-priced, prepaid wireless brand, Metro by T-Mobile.
Based on the complaint, which filed in the state supreme court in Manhattan, they spotted more than 2,200 violations by T-Mobile. Its pervasive illegal activity spanned 56 Metro stores in all five boroughs. And this includes authorized dealers and stores run by its MetroPCS NY unit.
Aside from that, it also accused T-Mobile of working with third parties to enroll unsuspecting consumers in high-priced financing plans without their consent.
Based on the complaint, a woman thought she bought a phone advertised at $599 from a Bronx dealer. However, she learned later on that she signed up for a 12-month lease costing $2,191.30.
In addition to that, the website of Metro by T-Mobile deceivingly advertised a 30-day guarantee on phone purchases. However, the fine print stated that the warranty is just for seven days. And it covered only a small sub-category of transactions.
T-Mobile Merger Sprint
U.S. retail employees and technicians of T-Mobile sought assurance from Deutsche Telekom regarding the safety of their jobs and salary in case the wireless carrier will merge with Sprint.
T-Mobile employed nearly 52,000 full-time and part-time employees in 2018. On the other hand, Sprint had about 28,500 employees in 2018.
T-Mobile United backed by the Communication Workers of America and the German Union urges CEO Tim Hoettges to make firm and verifiable assurances that jobs will be safe. Also, they are pleading that paycheck will not contract, and management will not meddle in union activities.
Then, they delivered the letter late Tuesday for the Deutsche Telekom CEO. And the letter went to a board member meeting with union members in Seattle late Tuesday.
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