Leaked Letter, Arbitration Challenge Threatens AT&T’s T-Mobile Acquisition

International Business Times Tech
August 16, 2011

AT&T’s possible acquisition of T-Mobile has faced some obstacles in recent days. A potentially devastating letter was leaked and AT&T has recently filed a lawsuit against more than 1,000 of its own customers who have engaged in a class-action suit which appears “in the guise of arbitration.” The Bursor & Fisher suit has gathered AT&T customers to protest the proposed acquisition by using the company’s own Arbitration Agreement.

AT&T clings to the idea that an arbitrator does not have authority to block the merger or affect the merger in any way. AT&T has said, “AT&T’s arbitration agreement with our customers — recently upheld by the Supreme Court — allows individual relief for individual claims. Bursor & Fisher is seeking class-wide relief wrapped in the guise of individual arbitration proceedings, which is specifically prohibited by AT&T;s arbitration agreement. Accordingly, the claims are completely without merit. We have filed suit in order to stop this abusive action.”

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