New York Attorney General Letitia James and California Attorney General Xavier Becerra announced the suit Tuesday. In addition to California and New York, Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin have joined the complaint, which was filed in Federal District Court in Manhattan.
T-Mobile stock fell 2% on the news to $75.27 and shares in Sprint plunged more than 6% to $6.57.
The combination of the Nos. 3 and 4 telecom companies would create a stronger competitor to AT&T and Verizon. Before consummating the current proposal, the companies had previous efforts fall apart.
In a statement, though, James decried it as “exactly the sort of consumer-harming, job-killing megamerger our antitrust laws were designed to prevent.”
“The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country,” James added in her statement.
Regulators have yet to sign off on the deal. FCC Chairman Ajit Pai has recommended that the commission give its OK, but a recent Wall Street Journal report indicated that members of the Department of Justice antitrust division had concerns about the transaction. Consumer advocacy groups have voiced their disagreement with the deal.
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