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NY Attorney General sues Sprint-Nextel for $300 million

Suit says company under-collected and underpaid sales taxes

Last week, New York Attorney General Eric Schneiderman sued Sprint-Nextel Corp. for allegedly undercollecting and underpaying $100 million in sales taxes in order to keep its competitive prices low.

The lawsuit, which Schneiderman filed Thursday in New York Supreme Court, is the first to be filed under a 2010 state law that lets the government sue contractors for fraud-related tax losses. Under the law, a company that committed fraud could pay three times the amount it allegedly underpaid in taxes.


Cathleen Flahardy

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