iPCS, Inc. (NASDAQ: IPCS) has announced that a circuit court judge in Cook County, Illinois, has denied a motion from Sprint Nextel (NYSE: S) to dismiss or stay the company’s lawsuit against Sprint over a joint venture with Clearwire Corporation (NASDAQ: CLWR).
This lawsuit pertains to Sprint’s planned WiMax transaction with Clearwire. iPCS’s subsidiaries are seeking a declaratory judgment alleging that Sprint’s consummation of the transaction, and its plan to compete against iPCS, violates an affiliation agreement.
The iPCS subsidiaries are asking the court for a permanent injunction enjoining Sprint and "those acting in concert with it" from consummating the transaction until it can be modified to comply with the deal between the iPCS subsidiaries and Sprint.
iPCS has been involved in suits against Sprint for about three years over exclusivity provisions. Sprint has appealed its case to the Illinois Supreme Court. iPCS noted that a decision on whether or not the court will hear the Sprint appeal is expected this fall.
Disputes between iPCS and Sprint go back to the Nextel transaction. The denial came from Judge Kathleen M. Pantle of the Circuit Court of Cook County, Illinois, Chancery Division.
So far the ruling is working in iPCS’s favor. iPCS shares are up about 2.5% at $17.54, while Sprint Nextel shares are down more than 2% at $6.62. Clearwire shares are not really affected today as shares are currently up 1.5% at $9.75.
Jon C. Ogg
September 16, 2008
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