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Sprint will pay $330 million to New York in tax fraud settlement

Sprint will pay $330 million to New York in tax fraud settlement


New York sued Sprint in 2012 over claims that it failed to bill customers for more than $100 million in taxes

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Illustration by Alex Castro / The Verge

A long-running lawsuit between the state of New York and Sprint has come to a close. According to New York Attorney General Barbara D. Underwood (via Engadget), the wireless carrier will pay the state $330 million to settle claims that it failed to collect more than $100 million in taxes from customers for nearly a decade.

The state sued the telecommunications company in 2012, alleging that the company deliberately failed to collect $100 million in sales taxes on flat-rate access charges for wireless plans over the course of seven years, and that it filed false records and statements to the state in order to reduce the prices of its products. At the time, Sprint denied the allegations, saying that they were “without merit” and vowing to contest them in court.

The settlement is the “largest-ever recovery by a single state in an action brought under a state false claims act,” and brings the long-running lawsuit to an end, according to the AG’s office. The office says that “a substantial portion” of the settlement has “already been distributed to the localities who were directly harmed by Sprint’s conduct.”

In a statement to Engadget, Sprint says that it is “pleased” with the settlement, and that while it disagrees with the conclusions of the AG’s office, it is moving forward “in the best interest of the company.”