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Verizon, AT&T ( T ) consumers say merger drove up cost of

wireless

service

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Lawsuit seeks billions of dollars in damages

By Mike Scarcella

May 16 (Reuters) - T-Mobile US ( TMUS ) must face a

proposed consumer class-action lawsuit challenging its $26

billion purchase of rival Sprint in 2020, after a court on

Thursday turned down the telecom giant's bid to appeal a key

ruling that let the case move forward.

In a brief order, the Chicago-based 7th U.S. Circuit Court

of Appeals denied T-Mobile's request to appeal a decision that

said the plaintiffs have legal "standing" to pursue their claims

that the merger has driven up prices for wireless services.

T-Mobile had sought to appeal the ruling now rather than

waiting for the case to play out in the lower court. A trial

judge granted the request in March, but the 7th Circuit declined

on Thursday to hear the case immediately.

The plaintiffs suing T-Mobile are Verizon and AT&T ( T )

customers, and T-Mobile contends they should not be allowed to

sue over T-Mobile's completed merger with Sprint. The lawsuit

seeks billions of dollars in damages, and the plaintiffs want

the courts to undo the combination.

T-Mobile declined to comment on Thursday.

Brendan Glackin, an attorney for the plaintiffs, said they

welcomed the appeals court's ruling. "We look forward to

developing the record and trying the case to a jury in Chicago,"

he said.

U.S. antitrust law gives consumers and others power to bring

lawsuits over mergers and acquisitions. T-Mobile's Sprint deal

faced regulatory scrutiny, and some government litigation, but

the deal moved ahead. Verizon and AT&T ( T ) are not defendants in the

lawsuit.

T-Mobile has called the consumers' lawsuit "unprecedented,"

and said the plaintiffs' damages were "speculative."

In opposing T-Mobile's bid for an immediate appeal, the

plaintiffs argued that the case could become mired at the 7th

Circuit for years, which would only make it harder to unwind a

merger that is already four years old.

The appeals court on Thursday called the issue of "standing"

a legal question "subject to substantial disagreement."

But the court said further progress at the trial court and

development of "actual evidence" in the case would help decide

the issue.

The case is T-Mobile US Inc ( TMUS ) v. Anthony Dale et al, 7th U.S.

Circuit Court of Appeals, No. 24-8013.

For T-Mobile: Theodore Boutrous Jr, Rachel Brass and Amir

Tayrani of Gibson, Dunn & Crutcher; and Clifford Histed and

Michael Martinez of K&L Gates

For consumers: Brendan Glackin of Lieff Cabraser Heimann &

Bernstein; Eric Cramer of Berger Montague; and Gary Smith of

Hausfeld

Read more:

T-Mobile can appeal to block consumer lawsuit over $26 bln

Sprint deal

T-Mobile must face private antitrust lawsuit over $26 bln

Sprint deal - US judge