Telephone and Data Systems, Inc.
A securities class action has been filed in the USDC – N.D.IL against United States Cellular Corporation and Telephone and Data Systems, Inc. (TDS) (“TDS” or the “Company”) on behalf of all persons or entities who purchased or otherwise acquired TDS securities between May 6, 2022 through November 3, 2022.
The Complaint alleges, in part, that TDS and its subsidiary, United States Cellular Corporation (“US Cellular”), made materially false and/or misleading statements and/or failed to disclose that:
- Defendants had no reason to believe US Cellular’s “free upgrade” promotional activity, which was tested and trialed during the second quarter of 2022, was effective at reducing the US Cellular’s postpaid churn rate as they represented to investors, as opposed to merely adding new postpaid subscribers, when its churn rate was actually increasing or remaining constant over most quarters in the class period;
- US Cellular was not making progress with respect to its churn rate, as it represented to investors;
- US Cellular was not in fact balancing its promotional activity and its profitability;
- due to extreme competition among postpaid carriers, US Cellular did not have the flexibility to offset the costs from widespread, expensive promotions with price increases; and
- as a result of the Companies’ decision for US Cellular to continue engaging in heavy promotions to address its postpaid subscriber churn rate despite any lack of positive impact on churn rate, US Cellular’s profitability substantially declined.
If you purchased US Cellular securities during the Class Period and would like to receive more information or join the action, please enter your contact information below and click “Submit Your Information”.
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