Connections USA, Inc. Wins Court of Appeals Case Against Sprint Corp.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Aug. 31, 1998--A federal appeals court has upheld an earlier decision against Sprint Corp., stating that the nation's third-largest long distance carrier defrauded Connections USA, Inc. and another audiotext company between 1989 and 1991.

The 10th U.S. Circuit Court of Appeals agreed with the Kansas District Court's ruling and ordered Sprint to pay $3.25 million in compensatory damages and $750,000 in punitive damages. The appeals court also agreed with Connections USA's claim that the lower court abused its discretion in the manner in which it awarded attorney's fees.

"After almost five years of fighting with Sprint, I'm glad that the courts have agreed with what we've been saying all along," said Art Levinson, President of Connections USA. "We maintained a complete and detailed record of everything that occurred during our business association with them. That greatly helped us."

In 1996, a federal court jury ruled that Connections USA had been defrauded by the long distance carrier when Sprint failed to bill many callers of the company's pay-per-call dateline service. Sprint had represented that it could bill all but several small parts the country, but the jury agreed with Connections' claim that Sprint knew it was capable of billing far less. The court also found that Sprint was not only aware of this inability to bill for the calls but also neglected to inform Connections USA and, in fact, went to extensive efforts to conceal its inferior billing network. Sprint eventually got out of the 900 number business altogether in late 1991.

"Proving a case in the telecommunications industry is a difficult thing to do. We're a good company who succeeds because we're honest. If you don't do good business you're going to pay the price," said Joe Haber, the Vice President of Connections USA. "This victory clearly attests to our credibility."

Founded in 1985, Connections USA pioneered pay-per-call datelines, offering voice personals over the phone. Eventually, Connections established itself as the most innovative provider of audiotext dating services in the US. Servicing both retail and wholesale customers, Connections in currently one of the largest providers of dateline voice personals and virtual chat programs, offering the most technologically advanced and profitable dating programs available. The company has recently expanded into Internet services with its two subsidiaries; DatingOnline.com, an interactive dating web site, and iServe.com, an Internet billing company. For more information, please contact Joe Haber, Vice President, at 954/525-4141, ext. 54 or by e-mail at [e-mail].

    CONTACT:  Connections USA, Inc., Fort Lauderdale
               Joe Haber, Vice President
               954/525-4141, ext. 54
               [e-mail]