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Sprint Nextel Settles Case with Florida Data Broker

August 10, 2006

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Sprint Nextel said it will get $1 million as part of a settlement with Florida- based data broker 1st Source Information Specialists.

"Our customers are well-served by this result. We are the first carrier to reach a judgment of this magnitude against a data broker," said Heidi Salow, senior counsel, Sprint Nextel Office of Privacy. "It sends a strong message that Sprint Nextel does not tolerate the deceptive practices employed by these bad actors."

Sprint Nextel sued 1st Source, the parent of four online data brokers, in January, claiming that it illegally obtained and sold detailed call records from customers.

In the complaint, Sprint Nextel alleged that a unit of 1st Source used fraudulent tactics, such as posing as customers seeking information about their own accounts, to access cell phone logs and phone numbers.

Sprint Nextel said that although the case against the company is closed, it is continuing to pursue claims against individual defendants believed to be responsible for the actions.

In addition, Sprint Nextel has sent scores of cease & desist letters to other companies that have advertised their ability to obtain call detail records or other private customer information.

The company said it has also been working with Congress to craft legislation that would criminalize or create strong civil penalties to combat this type of fraudulent activity.

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