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Judge Dismisses Two Claims In Case To Block The Clearwire-Sprint Nextel Joint Venture

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A judge has dismissed claims by two companies in a case trying to block the joint venture it was forming with Clearwire (NSDQ: CLWR) to roll-out a nationwide broadband company. In May, iPCS, a Sprint (NYSE: S) Nextel affiliate operating in Schaumburg, Ill., filed a lawsuit against its parent company, alleging the new Clearwire service would violate an exclusivity agreement signed with Sprint in 1999. Clearwire and Sprint Nextel have agreed to a $14.5 billion merger of its wireless broadband business. Yesterday, a Delaware judge removed two iPCS subsidiaries - Horizon PCS and Bright PCS - from the claims because the Delaware court said it had no jurisdiction over the Ohio-based companies. iPCS filed a document with the SEC regarding the judge’s ruling, and issued this statement: “The company is pleased that the court has ‘dismiss[ed] all claims against Horizon and Bright- based on this court’s lack of personal jurisdiction over them.” The Kansas City Star reported that Sprint was also pleased with the decision because it allows them to move forward in the lawsuit to determine whether its plan to spin off its WiMax business to a new company violates its contract with iPCS.

Jul 15, 2008 2:17 PM ET

Posted In: Legal, Companies, Clearwire, Sprint

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