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Nov. 27, 2008

Sprint Nextel is now facing a major class action lawsuit by over 19,000 current and former employees.

Sales personnel at Sprint say they were shortchanged on sales commissions.

A U.S. federal Court judge in Kansas ruled that the lawsuit can continue. Sprint is already in trouble, and many analysts say its current financial condition is very critical.

Sprint previously denied the alleged charges, which stated that the problem was caused by computer issues during Sprint’s merger with Nextel Communications. The employees disagree.

Lawyers for the plaintiffs have not yet stated any specific amounts. But Sprint isn't in a good position to pay a large judgment right now, having lost $326 million in the third quarter.

Sprint’s top CDMA executive, John Garcia, stepped down on Nov. 24.

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Source: SRB News.