Class Action suit against T-Mobile claims it lied to Congress and ripped off minority-owned stores،
T-Mobile fails to reach mediation agreement in attempt to delay class-action lawsuit against it
The class action claims that T Mobile conspired with the national T Mobile Retailer and master dealer Arch Telecom to close or buy majority-minority company T Mobile stores. The complaint alleges that “Arch Telecom is attempting to close plaintiffs' stores for absolutely zero compensation, depriving them of their livelihood and disgorging them of their investments. This is occurring as this complaint is filed” (i.e. i.e. last March). ). Arch Telecom is the third largest T Mobile retailer with more than 400 stores in 32 states.
The filing goes on to say: “Plaintiffs are primarily community organizations. T Mobile stores, and that's what T Mobile and Arch Telecom prefer to call them “sub-resellers”. T Mobile and Arch Telecom consider the latter as a “Master Dealer”. Using its operating standards, T Mobile controls virtually every aspect of the plaintiffs' activities.
planned to close stores such as the plaintiffs' stores.
The plaintiffs are seeking $100 million in compensatory damages and $1 billion in punitive damages, as well as attorneys' fees that are likely to be substantial. The filing explains how many plaintiffs suffered a financial hit. A sub-dealer was initially offered $35,000 for his store, which was later increased to $100,000. However, the store had recently been renovated, costing the owner $120,000, so the offer was declined.
But with the contracts between T Mobile and the applicants are expected to expire in June 2024, T Mobile had the upper hand by attempting to create what the plaintiffs called an “artificial termination date” of March 2023. The plaintiffs say T Mobile played a dirty game of squeeze and buy.