Last Thursday the path was cleared for a tax-fraud trial against Sprint-Nextel Corp. when a New York Supreme Court judge denied the telecom giant’s motion for summary judgment in a state False Claims Act case. New York Attorney General Eric Schneiderman alleges that Sprint knowingly failed to pay roughly 25 percent of sales taxes owed on customers’ monthly charges. The alleged underpayments total more than $100 million; if successful, the state could recover triple that amount plus penalties.

The case was originally brought as a qui tam action under the new tax provisions in the New York False Claims Act. As this blog has reported, the state recently chalked up its first recovery under those provisions.

Read the entire article, “Sprint Must Face $300 Million N.Y. Alleged Tax Fraud Suit”