Sprint-Nextel corporation is facing a costly court battle in New York state. New York state Attorney General Eric Schneiderman has alleged the the company has cheated New York out of millions in unpaid taxes and is suing the company to recover the lost funds.
“No matter the size of the corporation or entity, evading paying your fair share in taxes cannot be allowed,” commented Christopher Paulos, an attorney with the Levin, Papantonio law firm who practices in the areas of qui tam or whistleblower and False Claims Act litigation. “The ongoing litigation is a testament to the government’s dedication to see that corporations are held accountable.”
According to the lawsuit, Sprint-Nextel filed false and misleading documents to deliberately defraud New York state out of revenue that should have been paid on monthly service plans. The lawsuit alleges that the company actively concealed its practice from competitors, government officials, and its customers.
“Avoiding paying can give businesses an unfair advantage in the marketplace,” Mr. Paulos added. “By avoiding to pay its fair share, a company can undercut its competition with prices that the competition simply cannot match.”
At stake is approximately $130 million worth of unpaid taxes and penalties, if Sprint is found guilty. Sprint had previously appealed a lower Court’s decision to deny Sprint’s motion to dismiss the case. The series of appeals has resulted in the Appellate Division unanimously affirming the lower Court’s ruling.