CLEARWIRE SUED FOR FALSE ADVERTISING AND THROTTLING

WiMAX network operator Clearwire is the target of a new lawsuit that has been filed out of a Seattle district court. Lawyers representing the plaintiffs allege that Clearwire “throttles down the speed of its Internet service to speeds similar to dial-up telephone modem speeds,” and likens the company’s business practices to “a bandwidth Ponzi scheme.” Customers who are not satisfied with the speeds provided by Clearwire’s self-proclaimed high-speed internet are forced to pay early termination fees.

“Clearwire made materially false, misleading, and/or deceptive representations and omissions about the speed and capacity of its Internet service,” reads the court filing. “Rather than limiting its subscribers to a number that its broadband infrastructure can accommodate — such that Clearwire can make good on its representations regarding high-speed service and capacity — Clearwire signed up many more subscribers than it could handle so as to maximize revenue and profit.” The embattled network operator now faces false advertising claims from fifteen plaintiffs seeking class action status.