History of Case

This is a securities class action against Sprint and certain former Sprint executives (the “Defendants”) for alleged violations of the Federal Securities Laws during the Class Period.

Sprint is a wireless and wireline communications company headquartered in Overland Park, Kansas. In August 2005, Sprint acquired Nextel Communications, at the time the nation’s fifth-largest wireless carrier for $37.8 billion. $15.6 billion of the purchase price was allocated to “goodwill,” an intangible asset intended to represent the amount paid for a business over the fair market value of the assets and liabilities the business possesses. Throughout the Class Period, Sprint Stock traded on the New York Stock Exchange (“NYSE”) under the ticker symbol “S.” Sprint’s Stock and Bonds traded in the over-the-counter market throughout the Class Period.

On March 10, 2009, the initial complaint in this case was filed in the United States District Court, District of Kansas. The case is presently pending before the Honorable Eric F. Melgren and is captioned Bennett v. Sprint Nextel Corporation, Gary D. Forsee, Paul N. Saleh and William G. Arendt, Civil Action No. 09-CV-2122 EFM/KMH (the “Litigation”). Plaintiffs filed the Consolidated Complaint for Violation of the Federal Securities Laws (the “Complaint”) on August 11, 2009, alleging that Defendants made a number of false and misleading statements during the Class Period. As set forth in the Complaint, these alleged false and misleading statements include representations that Sprint was on track to achieve billions of dollars in benefits from merger synergies, that Sprint improved its customer mix as a result of tightening credit standards, that the integration of Sprint and Nextel systems and operations was progressing as planned, and that the goodwill associated with the Nextel purchase was not impaired.

Judge Eric F. Melgren has appointed three entities as “Lead Plaintiffs” pursuant to the requirements of the Private Securities Litigation Reform Act of 1995: PACE Industry Union-Management Pension Fund (“PACE”), a defined benefit plan based in Nashville, Tennessee; Skandia Mutual Life Insurance Company (“Skandia”), headquartered in Stockholm, Sweden; and West Virginia Investment Management Board (“WVIMB”), an institutional investor based in Charleston, West Virginia. The Lead Plaintiffs seek to recover money and other relief for the Class.

On January 6, 2011, the Court denied Defendants’ motion to dismiss the Complaint. Thereafter, Defendants filed answers denying all material allegations of the Complaint and asserting defenses. No court has made a ruling on the merits of plaintiffs’ allegations or on Defendants’ denials and defenses.

On March 27, 2014, the Court entered an order certifying a Class and appointing PACE, Skandia, and WVIMB as Class Representatives and Robbins Geller Rudman & Dowd LLP and Motley Rice LLC as Class Counsel.

On April 10, 2015, a settlement was reached in the Litigation between Lead Plaintiffs and Defendants. The Settlement Amount consists of $131,000,000.00 in cash, plus any interest earned thereon. A portion of the settlement proceeds will be used to pay attorneys’ fees and expenses to Lead Plaintiffs’ counsel and Lead Plaintiffs’ expenses, to pay for the Notice and the processing of claims submitted by Class Members, and to pay Taxes and Tax Expenses. The balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed, in accordance with the Plan of Allocation, to Class Members who submit valid and timely Proof of Claim and Release forms.