Sprint Nextel Guilty of RICO Law Violations?

Customer migration is one of the significant factors that is causing the decline of Sprint Nextel. Many dissatisfied customers choose to end their relationship with Sprint to seek better from other mobile phone service providers.


One of the best indication that customers are dissatisfied with a service is the number of complaints or suits directed against that service or company. Customers usually only resort to legal action when they feel that they have been seriously wronged. Sprint Nextel is currently facing several class actions for a variety of reasons. The most recent one accuses the company of violating RICO laws.

The class action was filed in the U.S. District Court for the Northern District of Alabama in Birmingham. Apparently, some consumers believe that they were not adequately informed about data fees accompanying picture mail service subscriptions so Sprint Nextel violated federal anti-racketeering laws.

Here is a statement from the suit,

“The purpose and intent of these deceptive, false, fraudulent and misleading advertisements was to entice and/or lure Sprint Nextel customers into purchasing the ‘Sprint Picture Mail’ plan for a $5/month service charge without disclosing the true charges associated with this add-on service, which were exorbitant and in many cases caused the purchaser’s bill to double.”

The complainants hope that by this suit Sprint Nextel will be forced to cease Picture Mail Plan advertising. They are also hoping that the company will disclose all related charges in itemized fashion on consumers’ bills. They are also hoping that they will receive compensation for expenses and damages.

It seems that Sprint Nextel is not getting any breaks this year. The continuing struggle of the company led some analyst to postulate that the company is heading into ruining. Unless the company can overcome the challenges, it may be absorbed by more successful rivals.