A federal judge
has agreed to a deal where Sprint Nextel pays $30 million to settle a
class-action lawsuit alleging it overcharged customers.
AT&T which is also involved in the case is not included in the settlement and will continue to face litigation.
Under the settlement, qualified business and residential customers would receive prepaid telephone calling cards worth a total of $25 million.
The suits claimed Sprint and AT&T conspired with MCI, to charge customers more than the regulated fee for the Universal Service Fund. This is supposed to help subsidise the cost of running phone service to rural areas, low-income customers and public facilities, such as schools, libraries and rural hospitals.