Telephone & Data Systems (TDS) Investor Settlement
TDS ($TDS) has reached a settlement with investors over claims that it misled them about the financial impact and effectiveness of its 2022 “Any Phone Free” promotion.
Outline
In 2022,Telephone & Data Systems launched its “Any Phone Free” promotion, promising quick results. However, in November 2022, the company admitted the promotion had failed, leading to losses. The next day, $TDS fell 25%, and Telephone & Data Systems faced a lawsuit from investors.
Timeline:
August 5, 2022 – Telephone & Data Systems launched “Any Phone Free” and claimed it would drive immediate customer growth, despite internal data suggesting otherwise.
November 3, 2022 – Telephone & Data Systems revised its earnings guidance downward, admitting that the promotion had resulted in higher-than-expected promotional losses.
November 4, 2022 – $TDS dropped 25%.
May 2, 2023 – Investors filed a lawsuit, claiming Telephone & Data Systems misrepresented the financial and subscriber impact of its promotional strategy.
March 2025 – Telephone & Data Systems agreed to a settlement with investors.
Background
In early 2022, Telephone & Data Systems was struggling with rising postpaid customer churn and competitive pressures from AT&T, Verizon, and T-Mobile. To retain customers, the company launched its “Any Phone Free” promotion across its entire market footprint.
Executives publicly stated that internal trials had proven the promotion would quickly reduce churn, and subscriber growth would improve in Q3 and Q4 of 2022.
However, internal reports showed, a few months later, that meaningful improvements would take at least 6–9 months, and that churn continued to rise.
Following these revelations, $TDS fell by 25%.
After that, investors filed a lawsuit claiming that Telephone & Data Systems misled them about the effectiveness and financial risks of its promotional strategy.
What Can Investors Expect Now?
TDS ($TDS) has reached a settlement with investors over claims that it misled them about the financial impact and effectiveness of its 2022 “Any Phone Free” promotion.
If you were affected by this situation, you may be eligible to file for a payout and receive your share of the settlement. Check the FAQ section below for details on eligibility and claims.
Frequently Asked Questions
All persons or entities that purchased or otherwise acquired TDS publicly traded securities between May 6, 2022, and November 3, 2022, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.5 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2 per share.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
1. Prepare documents for your payout
2. Audit the claim and make sure you get the maximum possible payout
3. File a claim with the settlement administration
4. Correspond with the settlement administration to resolve emerging issues
5. Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.