Clearwire can’t seem to catch a break. The Kirkland mobile broadband company has compiled massive losses, churned through executives and, last fall, cut its staff by 15 percent. Its future also was questioned after AT&T agreed to buy T-Mobile for $39 billion. Now, Fierce Wireless reports on a lawsuit that alleges that the company engaged in a scheme to boost revenue by offering poor service to customers in certain areas, thus increasing the likelihood that they would ultimately cancel their subscription plans early. The suit — filed in U.S. District Court in Seattle — indicates that management operated the program under the code-name “Project Star Trek” to make the company more attractive to potential investors.

Here’s more from the suit:

“The scheme was implemented by changing settings in the “pre-qualification tool,” software that Clearwire’s salespeople used to determine whether a potential customer’s address was close enough to the company’s transmission towers to receive an adequate signal. The new settings had the effect of “qualifying” customers, who, in fact, lived too far from the towers to get an adequate signal. Clearwire’s management knew that the changes would result in a large number of dissatisfied customers, and would result in increased ‘churn….’ One of the effects of this ‘churning’ was an increase in the company’s revenues from the collection of early termination fees.”

The allegations are certainly damning. After all, how often do you see a company accused of providing poor service in order to boost revenues?

In a statement provided to Fierce Wireless, Clearwire called the allegations “baseless” and “absurd.”

Update: Clearwire provided the full statement to GeekWire. It reads: “Any allegation that Clearwire conspired to mislead its customers is baseless and absurd.  We flatly deny any inference of fraud.  We will vigorously defend ourselves against any such allegations.”

A federal judge previously dismissed the case  in February 2010, but the plaintiffs allege that new information has come to light about “Project Star Trek.” That information was provided via a former Clearwire employee by the name of Donald Hammond who sent a copy of an email to the plaintiffs’ attorneys on March 3rd. According to Hammond, the company — with knowledge of former executive Perry Satterlee — authorized the change to the pre-qualification tool to expand the radius of coverage to 2.5 miles.

The plaintiffs are making their claim under Washington’s Consumer Protection Act as well as claims for common law fraud and negligent misrepresentation.

Backed by Google, Comcast, Intel, Sprint Nextel and others, Clearwire just last month replaced CEO Bill Morrow with longtime wireless veteran John Stanton.

[Copy of the suit via Fierce Wireless]

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