By Wailin Wong |
PlatinumTel Wireless, a Chicago-based prepaid wireless provider, has won a federal court case against several local competitors over false advertising and unfair competition.

A U.S. District Court judge in the Northern District of Illinois awarded PlatinumTel a $15 million judgment in late April. The provider had first sued a number of related companies in February 2008, alleging that two competitors named EZ Stream and U.S. Mobile were misrepresenting the amount of minutes contained in its prepaid wireless plans. In its 2008 lawsuit, PlatinumTel said it posted “substantial, seven-figure losses in 2005 and 2006″ as a result of” their competitors’ “fraudulent advertising.”

PlatinumTel won the $15 million after EZ Stream and U.S. Mobile failed
to comply with a March 2008 court order that, among other things,
required the defendants to file a certified statement every 30 days
about changes in rates, connection fees and other terms and conditions.
The companies did not admit to any wrongdoing as part of the order.

According to court documents, PlatinumTel has not yet been able to
collect on its judgment. The company said in a Wednesday statement that
it’s working with the court and remains “committed to seizing any and
all assets that correspond with the judgment.” PlatinumTel had earlier
called the outcome of the case “a major landmark ruling in the prepaid
wireless industry and for its consumer’s rights and advocacy.”

No one answered at a number listed for EZ Stream’s office in Chicago,
and a local number for U.S. Mobile was disconnected. An attorney
identified as EZ Stream’s lawyer in court documents said Wednesday he is
no longer representing the company.