If you are a current long-term investor in Sprint Nextel Corporation (Public, NYSE:S), you have certain options and you should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com
or at: +1 (858) 779 - 1554
An investor in Sprint Nextel (NYSE: S) filed a proposed securities class action lawsuit in the United States District Court for the District of Kansas on behalf of purchasers of Sprint Nextel Corporation common stock (NYSE: S) during the period between October 26, 2006 and February 27, 2008. According to the complaint the plaintiff alleges that Sprint Nextel Corporation ("Sprint Nextel") and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between October 26, 2006 and February 27, 2008 materially false and misleading statements regarding the its business and financial results and as a result of defendants' false statements, Sprint Nextel stock (NYSE: S) traded at artificially inflated prices.
In December 2004, Sprint Corporation and Nextel Communications ("Nextel") announced that they would merge. The merger was completed on August 12, 2005, with Sprint Corporation buying Nextel for $37.8 billion. The merger, so the lawsuit, turned out to be a disaster, as Sprint Nextel Corporation has had difficulties in combining the resources of the two companies due to culture clashes and technological issues. But the defendants repeatedly assured between October 26, 2006 and February 27, 2008 that Sprint Nextel was poised for a turnaround and was focused on improving its core operations. As late as the summer of 2007, defendants continued to play down and conceal Sprint Nextel's problems with its network and with its customer service issues and subscriber base. Beginning in early Fall 2007, Sprint Nextel finally began to acknowledge that its initiatives were not working and that Sprint Nextel was experiencing a serious deterioration in its subscriber base, due both to a slow down in new growth and a massive defection of its current subscribers to its competitors.
On February 28, 2008, before the market opened, Sprint Nextel reported disappointing fourth quarter and full year 2007 financial results, including a net loss for the quarter of $29.5 billion or $10.36 diluted loss per share and on this news, Sprint's stock collapsed $0.86 per share to close at $8.09 per share, so the lawsuit.
Sprint Nextel Corporation, located in Reston, VA, is a holding company that offers a range of wireless and wireline communications products and services for individual consumers, businesses and government customers. The Company conducts its operations through two segments: Wireless and Wireline. Sprint Nextel reported in 2007 Total Revenue of $40.146billion and in 2008 Total Revenue of $35.635billion. Shares of Sprint Nextel (NYSE:S) traded recently at $3.44 per share, down from its 52weekHigh of $5.94 per share, $9.33 per share in August ’08, $10.44 per share in February ’08, and almost $23 per share in 2007.
Those who are current long-term investors in SPRINT NXTEL CP (NYSE: S), have certain options and should contact the Shareholders Foundation, Inc. at:
Email: mail@shareholdersfoundation.com
or at: +1 (858) 779 - 1554
Shareholders Foundation, Inc.
Trevor Allen
3111 Camino Del Rio North - Suite 423 -
92108 San Diego
Tel:+1-(858)-
Fax:+1-(858)-
mail@shareholdersfoundation.com
www.ShareholdersFoundation.com
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