Telephone and Data Systems, Inc. Class Action Lawsuit - TDS
Case Summary
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The Telephone and Data Systems class action lawsuit seeks to represent purchasers or acquirers of Telephone and Data Systems, Inc. (NYSE: TDS) securities between May 6, 2022 and November 3, 2022, inclusive (the “Class Period”). Captioned Howard M. Rensin, Trustee of The Rensin Joint Trust v. United States Cellular Corp., No. 23-cv-02764 (N.D. Ill.), the Telephone and Data Systems class action lawsuit charges Telephone and Data Systems, its majority-owned subsidiary, U.S. Cellular Corp., and certain of the companies’ top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Telephone and Data Systems class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Telephone and Data Systems class action lawsuit must be filed with the court no later than July 3, 2023.
CASE ALLEGATIONS: Telephone and Data Systems purports to provide communications services through its majority-owned subsidiary, U.S. Cellular. Throughout fiscal 2021 and into fiscal 2022, U.S. Cellular was battling a systemic loss of “postpaid” customers.
The Telephone and Data Systems class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) defendants had no reason to believe U.S. Cellular’s “free upgrade” promotional activity was effective at reducing U.S. Cellular’s postpaid churn rate when U.S. Cellular’s churn rate was actually increasing or remaining constant over most quarters in the Class Period; (ii) U.S. Cellular was not making progress with respect to its churn rate, as represented to investors; (iii) U.S. Cellular was not balancing its promotional activity and profitability; (iv) due to extreme competition among postpaid carriers, U.S. Cellular did not have the flexibility to offset the costs from widespread, expensive promotions with price increases; and (v) as a result of Telephone and Data Systems’ and U.S. Cellular’s decision for U.S. Cellular to continue engaging in heavy promotions to address its postpaid subscriber churn rate despite any lack of positive impact on churn rate, U.S. Cellular’s profitability substantially declined.
On November 3, 2022, U.S. Cellular announced its financial and operating results for the third quarter, including revealing that service revenues totaled $781 million, versus $788 million for the same period in the previous year, and that net income (loss) attributable to U.S. Cellular shareholders and related diluted earnings (loss) per share were $12 million and $0.15, respectively, for the third quarter of 2022 compared to $34 million and $0.38, respectively, for the third quarter of 2021. U.S. Cellular also announced it was reducing its fiscal year 2022 outlook and it had lost another 32,000 postpaid customers in the quarter, and that its overall postpaid churn rate had increased from 1.30% to 1.42% quarter over quarter. On this news, the price of Telephone and Data Systems common stock declined more than 25%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Telephone and Data Systems securities during the Class Period to seek appointment as lead plaintiff of the Telephone and Data Systems class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Telephone and Data Systems class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Telephone and Data Systems class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Telephone and Data Systems class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.