NY AG Test-Drives False Claims Act With $300M Sprint Suit

Law360, New York (April 19, 2012, 1:27 PM EDT) -- Sprint Nextel Corp. on Thursday became the first target of New York state's False Claims Act, in a $300 million tax fraud action alleging the company is underpaying millions of dollars annually in state and local taxes from wireless calling plans.

The complaint alleges Sprint Nextel has knowingly and fraudulently failed to collect and pay more than $100 million in New York sales taxes on receipts from its sales of wireless telephone services since July 2005.

“Specifically, Sprint illegally avoided its New York sales tax obligations...
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