OVERLAND PARK (dpa-AFX) - The Federal Communications Commission is reportedly preparing to place a hefty fine of $105 million on Sprint Corp. (S) for cramming -- overcharging customers for services they did not request.
Sprint faces allegations that it billed customers for third-party services like text message alerts, horoscopes, sports scores, etc, they did not request for. If confirmed and finalized, the proposed fine would be a record charge imposed against a company by the FCC, similar to the penalty slapped on AT&T Inc (T) earlier this year.
In October, AT&T Inc. (T) agreed to pay $105 million in settlement for similar allegations of cramming. T-Mobile US Inc. also face similar charges made by the Federal Trade Commission, though it is working to settle the case.
According to a Wall Street Journal report, three of the five FCC Commissioners have indicated a vote in favor of the fine.
S closed Tuesday's trading at $3.81, down $0.24 or 5.93%, on the NYSE. The stock further dropped $0.01 or 0.26% in the after-hours trade.
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