Alamosa unit latest affiliate to sue Sprint

AirGate PCS, a subsidiary of Alamosa Holdings, which by subscriber numbers is the largest is Sprint’s wireless affiliate, has become the most recent of those affiliates to file a legal complaint against Sprint over Sprint’s pending merger with Nextel Communications.

AirGate’s complaint, filed in the Delaware Court of Chancery, actually names “Sprint Corporation, certain of its affiliates and Nextel Communications,” according to a statement from Alamosa. It alleges that a Sprint/Nextel merger would “breach the exclusivity covenants contained in the agreements governing its relationship with AirGate, and that Nextel unlawfully interfered with AirGate's exclusive rights under such agreements.”

The statement said that Alamosa, which will report its second quarter earnings on Wednesday morning, has attempted to discuss the issue with Sprint, but that the companies were unable to resolve the issue.

Sprint has now been sued by seven of its wireless affiliates in protest over its imminent merger, which recently received approval from the Federal Communications Commission. One of those suits, filed by U.S. Unwired, resulted in Sprint acquiring that company for $1.3 billion. At least two other affiliate lawsuits has ended in settlement.