Investigations

GRABAR LAW OFFICE INVESTIGATES CLAIMS ON BEHALF OF SHAREHOLDERS OF TELEPHONE AND DATA SYSTEMS, INC. (NYSE: TDS)

United States Cellular Corporation ("UScellular") is a wireless telecommunications service provider. UScellular is a subsidiary of Telephone and Data Systems, Inc. (NYSE: TDS).

A securities fraud class action complaint has survived a motion to dismiss. In doing so, the court determined that multiple statements made by defendants showed a strong inference of a mental state embracing intent to deceive the investing public.

The class action complaint alleges that TDS and its subsidiary, UScellular, via certain officers and directors, made materially false and/or misleading statements and/or failed to disclose that: (i) Defendants had no reason to believe UScellular’s “free upgrade” promotional activity, which was tested and trialed during the second quarter of 2022, was effective at reducing UScellular’s postpaid churn rate as they represented to investors, as opposed to merely adding new postpaid subscribers, when its churn rate was actually increasing or remaining constant over most quarters in the class period; (ii) UScellular was not making progress with respect to its churn rate, as it represented to investors; (iii) UScellular was not in fact balancing its promotional activity and its profitability; (iv) due to extreme competition among postpaid carriers, UScellular did not have the flexibility to offset the costs from widespread, expensive promotions with price increases; and (v) as a result of the Companies’ decision for UScellular to continue engaging in heavy promotions to address its postpaid subscriber churn rate despite any lack of positive impact on churn rate, UScellular’s profitability substantially declined..

Current TDS shareholders who have continuously held TDS shares since prior to May 6, 2022, can seek corporate reforms, the return of funds back to company coffers, and a court approved incentive award at no cost to them.

If you would like to learn more about this matter at no cost to you, you are encouraged to contact Joshua H. Grabar  at [email protected] or Mia R. Heller at [email protected], or call 267-507-6085.

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