NEW YORK (TheStreet) -- Shares of T-Mobile (TMUS) were gaining 1.2% to $26.22 Friday after the wireless carrier settled a lawsuit with the Federal Trade Commission in which the wireless carrier was accused of charging customers for unwanted services.
T-Mobile agreed to pay up to $90 million in refunds to its customers over the "cramming" practice, according to Re/code. The wireless carrier will also pay a total of $22.5 million in fines to the states and the FTC under the settlement.
The company is required to contact all current and former customers who paid unauthorized charges such as subscription text services that charged them monthly, to let them know about the refund program.
Exclusive Report: Jim Cramer's Best Stocks for 2015
TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk."