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Appellate Division rules state may sue Sprint

Appellate Division rules state may sue Sprint
Posted Thursday, February 27th 2014 @ 6pm  by Bud Lowell

New York's mid-level appeals court says State Attorney General Eric Schneiderman can go ahead with a lawsuit against Sprint.

Scheiderman is suing Sprint-Nextel for underpaying New York sales taxes to the tune of $130 million dollars. His suit under New York's False Claims Act is demanding Sprint pay damages of three times that amount plus penalties.

Sprint asked the Appellate Division of State Supreme Court to throw out the suit, saying there's no proof it knowingly violated the law -- and part of the alleged violations took place before 2010 when the laws were different. The Appellate Division justices unanimously upheld the lower court ruling.

The Attorney General accuses Sprint of deliberately under-collecting sales tax on its flat rate wireless calling plans to make them cheaper than the competition's. He charges Sprint was made aware of the situation and didn't do anything about it.


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