Sprint closed the book on a lawsuit brought by New York State’s attorney general after agreeing what the latter said was a record-breaking $330 million settlement.
The case related to accusations Sprint knowingly failed to pay $100 million in state and local sales tax owed on its wireless plans over the course of nearly a decade, attorney general Barbara Underwood announced. In a statement, the state explained the settlement is the largest-ever by a single state in an action under the False Claims Act.
“Sprint knew exactly how New York sales tax law applied to its plans, yet for years the company flagrantly broke the law, cheating the state and its localities out of tax dollars that should have been invested in our communities,” Underwood said, adding: “Now, Sprint will pay the price with this record-setting settlement.”
The state initiated the legal action in 2012, a year after what it termed a “whistle-blower lawsuit” regarding the tax evasion was filed. The original claimants will receive $62.7 million of the payout.
Sprint’s previous attempts to have the state’s proceeding dismissed were shot down by various courts.Subscribe to our daily newsletter Back