Sprint to pay $330 million in tax fraud settlement
Sprint was sued in 2012 by the State of New York over the claims that the company failed to bill its customers for over $100 million in taxes. It was a long on-going lawsuit between Sprint and the state of New York but it has now finally come to an end.
The New York Attorney General Barbara D. Underwood announced that the wireless carrier, Sprint will pay the state of New York $330 million to settle claims that the carrier failed to collect more than $100 million in taxes from its customers for nearly a decade.
Sprint was sued back in 2012 by the state of New York over the fact that the telecommunications company intentionally failed to collect $100 million in sales taxes for the wireless plan over the course of seven years.
The state of New York also alleged that the company filed false statements and records to the state in order to reduce the prices of its products and services.
At that time, Sprint denied those allegations and said that there were “without merit” and decided to contest the state in the court.
The settlement of $330 million is “the largest-ever recovery by a single state in an action brought under a state false claims act” and brings the lawsuit which had been running for about 6 years, to an end.
The New York’s Attorney General office said that a substantial amount of the settlement has been already distributed among the local authorities who were affected by Sprint’s conduct.
Sprint said about this that it is pleased with the settlement, however, it disagrees with the conclusions made by the Attorney General’s office.