Sprint Customer? Read on.

A proposed settlement has been reached in the early termination fee class action against Sprint, Nextel and/or Sprint/Nextel. The use of a flat-rate early termination fee (ETFs, not to be confused with Exchange Traded Funds) allegedly violates the Federal Communications Act and consumer protection law of the United States and individual states. Though Sprint/Nextel has denied any liability or wrongdoing, it has agreed to settle the claims under the terms of the Settlement Agreement.

What you need to know:
1) Did you enter into a wireless contract with Sprint between July 1999 and December 2008?
2) During that time, did you cancel your account and were charged an ETF? If so, and you can provide proof, you can receive $90.
3) If you did not cancel due to the ETF, you can receive $35.

You can find all necessary information here. The claim form is easy to fill out and takes no more than 5 minutes. ...continue

The SEC Adopted FINRA’s Limitations on Motions to Dismiss, Expect More Securities Arbitrations

The SEC adopted FINRA’s recommendation to limit motions to dismiss before an investor presents his or her case. Under the new rule, if a party brings a dispositive motion before the claimant has presented, it can only be granted on three grounds: the parties have settled in writing, there is a factual impossibility, or a party doesn’t file a claim within six years of the events at issue.

The Wall Street Journal reported that FINRA proposed the new rule in response to repetitive filings of dispositive motions that raise the cost of arbitration for retail investors. In adopting FINRA’s rule, the SEC has undoubtedly reduced costly motion practice and paved the way for investors to have a hearing of their case on the merits. For more on the rule itself, click here and here.

According to solo practitioner, John Castro, Esq., “the economic downturn and recent corporate scandals, like Madoff, have already increased the amount of investor arbitration claims. It’s even apparent on the New York State Bar Association's listserv; attorneys are sending referrals and asking me advice more and more frequently. This new rule will only add to the number of securities cases brought before an abitrator.”

The SEC approved the rule on Dec. 31, 2008, but FINRA spokesman Brendan Intindola explained that FINRA will publish a regulatory notice within 60 days of the SEC's approval, and the rules rule’s effective date will be 30 days after publication of the notice. ...continue