Sprint suffers setback in $300 million NY tax evasion case

New York Attorney General Eric Schneiderman filed a lawsuit which claimed that for the past seven years, Sprint had knowingly underpaid its state taxes on its flat-rate wireless data plans to the tune of $210,000 a week – totaling some $130 million. Conviction, though, means that Sprint would be subject to the New York False Claims Act and would owe three times its underpayment plus penalties, or $300 million.

Sprint told the court that Schneiderman was applying an out-of-context provision, but the appellate court was having none of it. The suit will move forward. According to Fierce Wireless, “Sprint said it is disappointed in the decision and is exploring its options.”

Sprint loses ruling in $300M lawsuit for underpaid taxes in New York (FierceWireless, Feb. 28, 2014)