Sprint Nextel Settles Age Discrimination Suit

Sprint Nextel Settles Age Discrimination Suit

Sprint Nextel announced its plans to settle a class-action lawsuit filed over allegations of age discrimination against 1,697 older employees who were laid off between 2001 and 2003.

The wireless company said it will pay $57 million to settle the claims after five long years of disputing the allegations.

The Claim

Over a thousand employees claimed that Sprint Nextel, which was Sprint Corp. at the time, illegally relocated employees who were 40 and over to positions within the company that were eventually eliminated due to downsizing.

Sprint denies the accusations and admits to no wrongdoing in terms of how they conducted the layoffs.  

“We elected to settle this case so that we can continue to focus on the business,” states Sprint spokesman Matt Sullivan.

Not the First Time

A comparable case was settled last May in a federal court in Atlanta. The company agreed to pay $5.5 million to 462 employees who also claimed that they were the victims of age discrimination while employed with Sprint.

The Settlement

Of the $57 million, the 11 lead plaintiffs would receive an average of $155,000 each, while an average of $20,332 would be split among the remaining 1,686 plaintiffs. The remainder of the settlement would go to attorneys’ fees and other expenses.

U.S. District Judge John Lungstrum must still decide whether or not to confirm the settlement.

(Source: http://www.chron.com/disp/story.mpl/ap/fn/4817045.html)

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