Sprint Investor's Suit Over $300M FCA Tax Case Gets Junked

Law360, New York (July 29, 2013, 3:30 PM EDT) -- A New York federal judge on Friday threw out a shareholder derivative suit blaming Sprint Nextel Corp. directors for an alleged tax-dodging scheme that led to a $300 million state False Claims Act suit against the company, finding the investor had not satisfied the demand futility requirement.

U.S. District Judge Andrew L. Carter Jr. ruled that while the Louisiana pension fund plaintiff argued that the Sprint directors knew that Sprint's tax strategy was illegal after it was sued, the fund, under the so-called Rales guide for...
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