Sprint Escapes Indemnity Over Telco Investor Fraud Suits

Law360, Los Angeles (October 21, 2013, 4:17 PM EDT) -- A Kansas federal judge ruled Monday that George K. Baum Advisors LLC couldn't seek indemnification from Sprint Spectrum LP over suits accusing the firm of lying to investors in a prospective partnership with a rural telecommunications company, saying the capital-raising activities were contractually independent.

While GKBA and Sprint had a contract containing indemnification language, the suits stemmed from securities sales covered by a different contract that GKBA had with Crossroads Wireless, which tried to raise money to partner with Sprint, the judge held.

Crossroads later went...
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