Supreme Court declines to hear Sprint’s $300M lawsuit appeal

The U.S. Supreme Court declined to hear Sprint Corp.’s appeal to dismiss a $300 million tax fraud lawsuit against the Overland Park-based wireless carrier on Tuesday.

This means the New York State Court of Appeals’ ruling stands. The Court of Appeals ruled in favor of the state in October, rejecting Sprint’s claim that a 2002 state law that requires sales taxes on interstate mobile phone services violates the U.S. Constitution.

The state of New York originally filed the lawsuit in 2012 which alleges Sprint intentionally failed to bill customers for more than $100 million in state taxes on wireless services during a seven-year period.

The suit, brought under the New York False Claims Act, would require Sprint (NYSE: S) to pay three times its underpayment plus penalties — more than $300 million — if it’s found liable, which is still to be determined.

Read more: Kansas City Business Journal


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