TDS.US
id: 696
Telephone & Data Systems (TDS) Investor Settlement
The parties have reached an agreement to settle the case, but the terms are still being finalized.
N.D. Illinois
Court1:23-cv-02764
Case number05/06/2022
Class period Start11/03/2022
Class period EndTDS ($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.
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Filing date
05/02/2023
Lead Plaintiff Deadline
07/01/2023
Plaintiffs
Howard M. Rensin, Trustee of The Rensin Joint Trust
Attorneys
Levi & Korsinsky
Defendants
Laurent C. Therivel; Douglas W. Chambers
Judge
Mary M. Rowland
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?