Sprint to Pay $330 Million to Settle Tax Violation in New York State

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Sprint Corporation (NYSE:S) agreed to pay $330 million to settle the False Claims Act lawsuit filed against it by the State of New York.

The telecommunications company reached the settlement agreement with the New York State Attorney General’s Office last week.

A record-breaking settlement

According to the attorney general’s office, the $330 million is its largest recovery under the New York False Claims Act. It is also the largest recovery by a single state in an enforcement action brought under the state law.

The settlement agreement resolves the enforcement action against Sprint. The state filed a lawsuit against the company after a whistleblower reported the company’s tax violation.

The whistleblower will receive $62.7 million from the recovery. The False Claims Act entitles whistleblowers to receive a specific share of the settlement.

Sprint intentionally broke New York State’s sales tax law

In its lawsuit, the state alleged that Sprint did not collect and remit over $100 million in state and local sales taxes on its flat-rate wireless calling plans sold to New Yorkers for ten  years.