T-Mobile USA Obtains Four More Injunctions Against Prepaid Phone Traffickers

T-Mobile USA says that it obtained four more separate final judgments and permanent injunctions as part of its efforts to combat the unauthorized bulk purchase and resale of T-Mobile’s prepaid mobile phones, SIM cards, and other accessories.

Three of the orders were recently handed down by a federal court in Los Angeles, permanently enjoining Platform Enterprises, Delta Games, California Products International, and their principals from continuing to traffic in T-Mobile prepaid wireless phones and SIM cards. In addition, two of the judgments each award T-Mobile US$5 million in damages.

The fourth judgment was entered by the federal court in Dallas, permanently enjoining Arena Trading, and its principal from trafficking in T-Mobile prepaid wireless products as well as awarding T-Mobile US$5 million in damages.

Traffickers typically buy or solicit others to buy prepaid mobile phones in bulk from retail stores, remove the phones from their original packaging, discard warranties and manuals, hack into the phones’ software, fraudulently activate the SIM card, and then resell the phones and accessories at a substantial profit.

“T-Mobile is committed to protecting consumers and our company by shutting down these traffickers,” said Dave Miller, senior vice president and general counsel, T-Mobile USA. “We are pleased by the results in the cases we have completed thus far, and expect similar successes in our other pending lawsuits.”

If the defendants violate the injunctions, the orders each provide a mechanism for enforcement by the courts and a minimum charge of an additional US$5,000 in damages to be paid to T-Mobile.

T-Mobile has previously been awarded more than $28 million in judgments entered in similar cases.

Posted to the site on 4th June 2009