Sprint To Pay $330 Mln To New York To Settle Unpaid Tax Suit

(RTTNews) - Sprint has agreed to pay New York $330 million in a settlement over claims it avoided collecting certain local and state taxes on cellular plans between 2005 and 2014.

A lawsuit filed by New York Attorney General Barbara Underwood had alleged that for nearly a decade Sprint knowingly failed to collect and remit more than $100 million in state and local sales taxes owed on its flat-rate wireless calling plans sold to New Yorkers.

The $330 million recovery is the largest-ever recovery by the New York Attorney General resulting from an action filed under the New York 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," said Attorney General Underwood.

"Now, Sprint will pay the price with this record-setting settlement. This should serve as a clear reminder that the New York False Claims Act protects New Yorkers from companies that attempt to flout their obligations under New York tax law."