First, on Dec. 15, the wireless service provider got slapped with a class-action lawsuit over its international calling rates. Customers say they signed up for the MetroPCS $5-per-month unlimited international calling plan, only to find out certain countries were excluded and that the exclusions were not made clear up front. The subscribers want MetroPCS to reimburse them or provide the calling features they thought they had signed up to use. Further, they want the courts to bar MetroPCS from charging for any international calls.
As if that wasn’t enough, two other law firms – one on Wednesday and another on Thursday – hit MetroPCS with allegations of federal securities fraud. They’re representing holders of common stock who bought shares between Feb. 26, 2009 and Nov. 4, 2009.
Shareholders say MetroPCS failed to say it’s losing more customers than ever and not adding new ones to replace them; that its average revenue per user was lower than expected because of higher promotional costs; that the first-quarter subscriber increase stemmed from offering the first month free and cancellation without penalty; that reported new subscriber numbers included upgraded subscribers as new additions; and that costs of luring new customers grew because of intense marketing in the Northeast.
MetroPCS has not publicly commented on the lawsuits. Its stock price had plunged 7.28 percent by 12:40 p.m. on Thursday, to $7.13.