T-Mobile fails to reach a mediated agreement in an attempt to hold off a class action lawsuit against it
The class action suit claims that T-Mobile conspired with national T-Mobile retailer and Master Dealer Arch Telecom to close or buy the mostly minority-owned T-Mobile stores. The complaint alleges that “Arch Telecom attempts to close the Plaintiffs’ stores for absolutely zero compensation, depriving them of their livelihood and disgorging them of their investments. This is occurring as of the time this Complaint is being filed” (which was this past March). Arch Telecom is the third largest T-Mobile retailer with over 400 stores in 32 states.
The filing goes on to say, “The Plaintiffs are essentially community-based T-Mobile stores, and they are what T-Mobile and Arch Telecom prefer to call “Sub-Dealers.” T-Mobile and Arch Telecom hold the latter out to be a “Master Dealer.” Using its operating standards, T-Mobile controls substantially every aspect of the Plaintiffs’ business.”
planned to close stores such as the Plaintiffs’ stores.
The Plaintiffs seek $100 million in compensatory damages and $1 billion in punitive damages plus attorney fees which are likely to be substantial. The filing explains how many of the Plaintiffs took a hit financially. One Sub-Dealer was initially offered $35,000 for its store which was raised to $100,000. However, the store had been recently renovated costing the owner $120,000 so that offer was turned down.
But with the contracts between T-Mobile and the Plaintiffs set to expire in June of 2024, T-Mobile had the upper hand as it tried to create what the Plaintiff’s called an “artificial termination date” of March, 2023. The Plaintiffs say T-Mobile played a dirty game of “squeeze and buy.”
