Sprint has been slapped with a $300 million lawsuit by New York state for tax fraud, the NY attorney general's office announced Thursday. The carrier allegedly submitted false records that allowed it to underpay taxes, in the interest of keeping its monthly charges low to "obtain an advantage over its competitors."
While Sprint doesn't top the charts for customer satisfaction, it has long offered cheaper service plans than its larger competitors: AT&T and Verizon. According to Eric Schneiderman, NY attorney general, Sprint failed to correctly collect and pay taxes on the monthly access charges its customers paid. "Sprint concluded that this practice would position its calling plans as cheaper than competitors' plans by $4.6 million per month, collectively, because of sales taxes not collected and paid," states the attorney general's press release.