NEW YORK (TheStreet) -- T-Mobile (TMUS) shares are down -0.42% to $33.27 on Wednesday after the FTC sued the telecom company for "cramming" customer's bills with hundreds of millions of dollars in bogus charges as recently as December.
T-Mobile colluded with third party vendors to add charges to customers bills, actively hid those charges in the bills and then pocketed up to 40% of the extra charges, according to FTC officials.
Must Read: Warren Buffett's 25 Favorite Stocks
"It's wrong for a company like T-Mobile to profit from scams against its customers when there were clear warning signs the charges it was imposing were fraudulent," said FTC Chair Edith Ramirez.
"T-Mobile is fighting harder than any of the carriers to change the way the wireless industry operates, and we are disappointed that the FTC has chosen to file this action against the most pro-consumer company in the industry rather than the real bad actors," countered T-Mobile CEO John Legere in a statement.