New York State sues Sprint Nextel for $300 million in tax Fraud

It has been a while since we have seen a  good lawsuit rolling around the web. Not that there still aren’t plenty of them going on in the industry everyday.  One of the latest involves Sprint and the State of New York. The state has filed the suit claiming the carrier carried out major mispractices. The biggest claim is Sprint failing to bill customers $100 million for services over the course 7 years.

“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”.

Sounds like Mew York really wants their money. The suit is aimed at collecting a whopping $300 million in penalties, fees and owed money. Sprint may be the third largest carrier in the nations, but a suit of this magnitude sure as heck can’t do them any good. It didn’t take long for Sprint to issue a statement saying that the suit is being filed without merit.

“This complaint is without merit and Sprint categorically denies the complaint’s allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. With this lawsuit, the Attorney General’s office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers’ rights and fight this suit.”

Let’s hope that all of these claims are found to be incorrect, for the sake of the HTC EVO 4G LTE and Galaxy Nexus.

Source: TalkAndroid