Sprint Avoids SEC Action, Still Faces New York State Suit

A Sprint store in Springfield | Photo by Nicole Lunger
Photo by Nicole Lunger

A year-long federal inquiry into Sprint Corp.’s collection of sales taxes in the state of New York has ended without action, according to the company’s quarterly report filed Monday. The Securities and Exchange Commission notified Overland Park, Kan.-based Sprint in July that it was closing its investigation and “did not intend to recommend an enforcement action,” according to the filing.

Sprint still faces a lawsuit from the state of New York claiming that the company failed to collect and pay approximately $300 million in state sales tax from its wireless plans since July 2005. In the filing, Sprint stated that the complaint is without merit and that they did not expect the lawsuit to have a “material adverse effect” on the company’s finances or operations.


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