Clearwire Facing Lawsuit over Advertising and Early Termination Fees

A legal action has been filed against US based WiMAX operator, Clearwire seeking certification of a class action on behalf of Clearwire subscribers. The lawsuit is alleging that Clearwire is misrepresenting the quality of its WiMAX network and then imposing early-termination fees if a customer is unable to secure a reliable service.

The complaint alleges that the Early Termination Fee constitutes an unlawful penalty, stymies competition, and is otherwise void and unenforceable.

The complaint also alleges that Clearwire engages in false advertising of its internet and telephone services. Although Clearwire advertises its internet service offering as a reliable, comparable, and "always-on" alternative to cable internet or DSL, the complaint alleges that Clearwire's internet service is actually far inferior to cable internet and DSL, as consumers frequently experienced service disruptions, including dial-up speeds and lack of service entirely.

The plaintiffs who have brought the lawsuit are from various states in which Clearwire offers service, including Washington, Hawaii, Minnesota, and North Carolina. They seek recovery of any Early Termination Fees paid by Clearwire subscribers, as well as an injunction prohibiting Clearwire from enforcing the Early Termination Fees and from further false advertising.

The lawsuit is captioned Minnick et al. v. Clearwire US, LLC, and was filed in King County, Washington. Plaintiffs are represented by the Washington, D.C. law firm of Tycko & Zavareei LLP and the Seattle, Washington law firm of Peterson Young Putra.

Posted to the site on 23rd April 2009