3rd Circ. Says Sprint's $17.5M Class Pact Not Good Enough

Law360, New York (June 29, 2012, 10:00 PM EDT) -- The Third Circuit on Friday rejected a $17.5 million consumer class-action settlement over Sprint Nextel Corp.'s allegedly unlawful flat-rate early termination fee, demonstrating the court's increasing resistance toward simply rubber-stamping previously approved pacts.

In reversing the settlement's approval and remanding the case to the District of New Jersey, a three-judge panel found that the lower court had failed to act in the best interest of potential plaintiffs when it decided that it would be unreasonable for Sprint to conduct a search of its billing records that...
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