Friday, April 20, 2012
New York sues Sprint
New York State has sued Sprint Nextel 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. New York Attorney General Eric Schneiderman filed his complaint in the New York State Supreme Court and said the case is the first tax enforcement action filed under the state's False Claims Act. Schneiderman said Sprint's decision not to collect and pay taxes was part of the company's nationwide effort to lure customers from rivals such as AT&T and Verizon Wireless.