Sprint Being Sued for $300 Million by State of New York

April 23, 2012 in News by Hashim Fannin

LightSquared and Sprint Strike 15-Year Network Accord

Sprint has been a bad little carrier according to New York attorney general, Eric Schneiderman.  Schneiderman alleges Sprint has been purposely underpaying state taxes, to the tune of $300 million, with the balance growing by $30,000 each day.  The lawsuit alleges Sprint provided the state with false records so as to underpay taxes, thus keeping its monthly charges low, and consequently allowing Sprint to “obtain an advantage over its competitors”.  Sprint of course denies the allegations in a statement saying “This complaint is without merit and Sprint categorically denies the complaint’s allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. With this lawsuit, the Attorney General’s office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers’ rights and fight this suit.”

 

Source:  ARS Technica

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