Dobson Cellular Sued by Lone Star Phones for $27 Million


DALLAS, May 6, 2003 (PRIMEZONE) -- A Texas company, LSPCS, Inc., which does business as Lone Star Phones, has filed suit in Federal court against Dobson Cellular Systems, Inc., alleging that Dobson illegally terminated Lone Star's contracts and committed fraud and negligent misrepresentation in its dealings with Lone Star. The suit also alleges that Dobson employees manipulated the timing of commission payments to the detriment of Lone Star.

Dobson Cellular Systems, Inc., is a subsidiary of Dobson Communications Corporation, which has offices in Texas, Oklahoma and other states. It markets cellular telephone services to customers in rural service areas or "RSAs." Lone Star previously contracted with Dobson to act as one of its independent agents in three RSAs, all located in Texas.

According to the suit, filed Friday in U.S. District Court, Dallas, Dobson illegally terminated Lone Star's contracts because of the arbitrary actions of one of its employees. The suit requests a minimum of $27 million in damages.

"They simply failed to do what they promised," said Steve Davis, President of Lone Star. "And, finally, we were terminated because the Dobson market manager was angry at us for making sales in certain areas expressly permitted by the contract."

Specifically, the petition filed by Lone Star alleges that Dobson committed breach of contract, fraud, negligent misrepresentation, civil conspiracy, and other offenses.

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