In June 2021, Kaskela Law filed a stockholder derivative and class action complaint on behalf of T-Mobile US, Inc. (T-Mobile”) and the company’s stockholders against Softbank Group Corp., Deutsche Telekom AG, and numerous individual defendants. C.A. No. 2021-0479-PAF (Del. Ch.).
The complaint challenged a series of agreements struck in 2020 that arose out of a merger agreement negotiated in 2018 between T-Mobile and Sprint Corporation (“Sprint”). As detailed in the complaint, during the lengthy regulatory limbo of that merger, Sprint and its controlling stockholder, SoftBank, both came under severe financial distress. When the outside date for
the closing of the merger passed, T-Mobile possessed significant leverage to negotiate new merger terms for the benefit of the Company and its public stockholders but failed to do so.
On June 1, 2021, the Court largely denied defendants’ motions to dismiss the complaint, paving the way for litigation to proceed into the current discovery phase.