Sprint Nextel may be as successful as they come and is the 3rd-largest mobile carrier in the United States, but they may be in a heap of trouble. Reuters reports that the State of New York has filed a suit against the mobile carrier citing major mispractices carried out. Among the major accusations are Sprint failing to bill its customers $100 million for its wireless services over seven years according to the complaint filed by New York Attorney General Eric Schneiderman. Schneiderman has his reasoning for this too as he states:
“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”.
It looks as if New York is out for major retributions too, as it is looking for a whopping $300 million total resulting from the amount underpaid multiplied three times plus penalties. Let’s just hope this doesn’t affect upcoming devices such as the upcoming HTC EVO 4G LTE.
Update:
Sprint obviously doesn’t agree and just responded with the following statement:
“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.”
Thanks to @CoffeeRoomNews
source: Reuters and Sprint
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