Sprint pays New York record $330 million to settle suit; carrier failed to collect sales tax

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Sprint has paid the State of New York a record breaking $330 million to settle a False Claims Act lawsuit filed by the Empire State’s Attorney General Barbara D. Underwood and Acting Tax Commissioner Nonie Manion. A press release disseminated by the Attorney General’s office (via Engadget) revealed the settlement that ends the lawsuit known as People v. Sprint Communications.
The suit alleged that Sprint failed to collect and remit sales tax and other local taxes when it rang up flat rate wireless plans sold to New Yorkers. The carrier did not collect these taxes for …

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