Leadership of UScellular Owner Sued for Phone Promotion Success

Telephone and Data Systems Inc. officers misled investors about the success of subsidiary United States Cellular Corp.'s promotion to combat client churn, which harmed the telecommunication company, a shareholder derivative lawsuit said.

TDS’s stock collapsed 26% the day leadership said that UScellular still faced a net loss of 31,000 postpaid subscribers and that promotion expenses dug into earnings, stockholder Karen Skye McMillan’s complaint filed in the US District Court for the Northern District of Illinois said Tuesday.

Share prices closed at $12.28 on Nov. 4, 2022, after executives caused the company to share disappointing third quarter earnings results for that ...