April 19 New York on Thursday sued Sprint Nextel
Corp for more than $300 million, accusing the company of
tax fraud for deliberately not collecting or paying millions of
dollars of taxes for its cell phone service.
Sprint, the third-biggest U.S. mobile service provider,
failed to bill customers for more than $100 million of taxes for
its wireless services over seven years, according to New York
Attorney General Eric Schneiderman.
Schneiderman filed his complaint in the New York State
Supreme Court on Thursday, and said the case is the first tax
enforcement action filed under the state's False Claims Act.
The lawsuit seeks three times the amount underpaid, plus
Schneiderman said Sprint's decision not to collect and pay
taxes was part of the Overland Park, Kansas-based company's
nationwide effort to lure customers from rivals such as AT&T Inc
and Verizon Wireless, and make its service $4.6 million
less expensive per month.