Important Legal Issues for Telecom Companies to Address in the Near Future: Verizon and Sprint Nextel

A series of posts will be issued on recent filings from major telecommunications companies with the United States Securities and Exchange Commission. Companies listed on the New York Stock Exchange are required to list all known business risks for their investors. The following extracts are from the 10-K annual reports of these companies -- the 10-K "provides a comprehensive overview of the company for the past year". Thank you to Artists Against Wi-Fi for this information.

Following are the filings of Verizon and Sprint Nextel.

VERIZON:
We are subject to a significant amount of litigation, which could require us to pay significant damages or settlements.
Our business faces a substantial amount of litigation, including, from time to time, patent infringement lawsuits, antitrust class actions, wage and hour class actions, personal injury claims and lawsuits relating to our advertising, sales, billing and collection practices.
In addition, our wireless business also faces personal injury and consumer class action lawsuits relating to alleged health effects of wireless phones or radio frequency transmitters, and class action lawsuits that challenge marketing practices and disclosures relating to alleged adverse health effects of handheld wireless phones. We may incur significant expenses in defending these lawsuits. In addition, we may be required to pay significant awards or settlements. 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2011
Verizon Communications Inc.
http://eol.edgarexplorer.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1%3FSessionID=DWhiFmuvkbkwYa-&ID=8435144#D257450D10K_HTM_TX257450_2

SPRINT NEXTEL:
Concerns about health risks associated with wireless equipment may reduce the demand for our services.
 Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency emissions from these devices. Purported class actions and other lawsuits have been filed against numerous wireless carriers, including us, seeking not only damages but also remedies that could increase our cost of doing business. We cannot be sure of the outcome of those cases or affected by litigation of this nature or public perception about health risks. The actual or perceived risk of mobile communications devices could adversely affect us through a reduction in subscribers, reduced network usage per subscriber or reduced financing available to the mobile communications industry. Further research and studies are ongoing, and we cannot guarantee that additional studies will not demonstrate a link between radio frequency emissions and health concerns.

For the fiscal year ended December 31, 2010
Commission file number 1-04721
SPRINT NEXTEL CORPORATION
http://investors.sprint.com/Cache/11430236.PDF?D&O=PDF&IID=4057219&OSID=9&Y&T&FID=10793990