CHICAGO, April 23, 2015 /PRNewswire/ -- NEATT WIRELESS, LLC./DEMPSTER GROUP, LLC. ("NEATT") today announced the filing of an antitrust complaint against AT&T, Inc./Cingular Wireless Corporation ("AT&T") with the U.S. Department of Justice's Antitrust Division ("DOJ") and the Federal Communications Commission ("FCC").
In letters to Assistant Attorney General William J. Baer and to Chairman Tom Wheeler of the FCC, NEATT alleges that AT&T engaged in a pattern of misconduct, which included violating the Final Consent to the 2004 merger between AT&T and Cingular Wireless Corporation, possible fraudulent behavior, providing financial guaranties to certain deferred asset holders, and negotiating in bad faith by withholding and providing misleading information regarding critical elements of the transaction with NEATT that resulted from the AT&T/Cingular merger.
These alleged actions taken by AT&T induced NEATT to acquire certain AT&T wireless properties in northeastern Arkansas under terms and conditions that served to undermine the successful operations of the acquired business.
"AT&T used its market dominance in Arkansas and overwhelming financial position to undermine the successful operations of NEATT through a continuing series of deliberate actions, that had the effect of rendering the company unable to compete in the northeastern Arkansas cellular market," said Percy L. Berger, Sr, NEATT'S Chairman and CEO. "The solution to these disputes are provided for in their Purchase Agreement, Dispute Resolution section. To date, AT&T has refused to submit to this provision. I guess they don't want the truth to be known."
The alleged actions taken by AT&T include:
1) Inducing NEATT to enter into an unrealistically short Transition Services Agreement ("TSA");
2) Luring subscribers back to AT&T that NEATT had just acquired from AT&T;
3) Reacquiring the remaining subscribers at a price that was substantially lower than the fair market price at that time;
4) Providing guarantees that were prohibited by the Final Consent to cell tower and real estate lessors to induce them to transfer certain lessor liabilities to NEATT immediately prior to a deadline which would have required $2.0mm cash payments by AT&T to NEATT if the transfers were not made;
5) Negotiating in "bad faith" to induce NEATT to settle the disputes at an unfair market valuation; and,
6) Refusing to participate in the dispute resolution process required by the relevant agreement.
Complete details are available in the Complaint Letters at www.neattwireless.com.
About NEATT WIRELESS, LLC/DEMPSTER GROUP, LLC:
NEATT WIRELESS, provided wireless telecommunication services. Founded in 2004, NEATT is an African-American owned, operated and managed wireless business in Arkansas. DEMPSTER GROUP provided financial advisory services to small and medium sized companies.
SOURCE Neatt Wireless, LLC