Metro PCS 2010 Annual Report Download - page 70

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60
Jacksonville, Florida; Orlando, Florida; Tampa, Florida; Norcross, Georgia; Shreveport, Louisiana; Chelmsford,
Massachusetts; Grand Rapids, Michigan; Livonia, Michigan; Las Vegas, Nevada; Hawthorne, New York; Ft.
Washington, Pennsylvania; and Plano, Texas. As of December 31, 2010, we also operated 159 retail stores
throughout our metropolitan areas. Our executive offices, all of our regional offices, switch sites, retail stores and
virtually all of our cell sites are leased from unaffiliated third parties. We believe these properties, which are being
used for their intended purposes, are adequate and well-maintained.
Item 3. Legal Proceedings
We are involved in litigation from time to time, including litigation regarding intellectual property claims that we
consider to be in the normal course of business. Legal proceedings are inherently unpredictable, and the matters in
which we are involved often present complex legal and factual issues. We intend to vigorously pursue defenses in all
matters in which we are involved and engage in discussions where appropriate to resolve these matters on terms
favorable to us. We believe that any amounts alleged in the matters discussed below for which we are allegedly
liable are not necessarily meaningful indicators of our potential liability. We determine whether we should accrue an
estimated loss for a contingency in a particular legal proceeding by assessing whether a loss is deemed probable and
can be reasonably estimated. We reassess our views on estimated losses on a quarterly basis to reflect the impact of
any developments in the matters in which we are involved. It is possible, however, that our business, financial
condition and results of operations in future periods could be materially adversely affected by increased expense,
including legal and litigation expenses, significant settlement costs and/or unfavorable damage awards relating to
such matters. Other than the matter listed below we are not currently party to any pending legal proceedings that we
believe could, individually or in the aggregate, have a material adverse effect on our financial condition, results of
operations or liquidity.
MetroPCS, certain current officers and a director (collectively, the “defendants”) have been named as defendants
in a securities class action lawsuit filed on December 15, 2009 in the United States District Court for the Northern
District of Texas, Civil Action No. 3:09-CV-2392. Plaintiff alleges that the defendants violated Section 10(b) of the
Exchange Act and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act. The complaint alleges that the
defendants made false and misleading statements about MetroPCS’ business, prospects and operations. The claims
are based upon various alleged public statements made during the period from February 26, 2009 through November
4, 2009. The lawsuit seeks, among other relief, a determination that the alleged claims may be asserted on a class-
wide basis, unspecified compensatory damages, attorneys’ fees, other expenses, and costs. On February 16, 2010,
Kevin Hopson, an alleged MetroPCS shareholder, filed a motion in the United States District Court for the Northern
District of Texas seeking to be designated as the lead plaintiff in this action. On May 11, 2010, the Court appointed
Kevin Hopson as lead plaintiff and on June 25, 2010, Plaintiff (an individual on behalf of others similarly situated)
filed an amended complaint. Defendants’ filed a motion to dismiss on August 9, 2010. Plaintiff filed its opposition
to Defendant’s motion to dismiss on September 8, 2010, and Defendants’ reply was filed on October 8, 2010. No
hearing has been scheduled on Defendants’ motion to dismiss.
Due to the complex nature of the legal and factual issues involved in this class action matter, the outcome is not
presently determinable. If this matter were to proceed beyond the pleading stage, MetroPCS could be required to
incur substantial costs and expenses, including legal and litigation expenses, to defend this matter and/or be required
to pay substantial damages or settlement costs, which could materially adversely affect our business, financial
condition and results of operations.
Item 4. (Removed and Reserved)
None.