ALBANY, N.Y. (CBSNewYork/AP) — New York state officials say Sprint will pay $330 million to settle a lawsuit that accused the telecommunication company of dodging more than $100 million in state and local taxes.
Attorney General Barbara Underwood and Acting Tax Commissioner Nonie Manion said Friday the agreement resolves a tax enforcement case brought in 2011.
The suit said Sprint violated the New York False Claim Act for nearly a decade by knowingly failing to collect and remit sales taxes owed on flat-rate wireless calling plans sold to New Yorkers.
Sprint spokeswoman Lisa Belot says the Overland Park, Kansas-based company disagrees with the state’s characterizations but is pleased with the settlement and believes it’s in Sprint’s best interests.
State officials say a whistleblower in the case will receive nearly $63 million of the settlement.
Earlier this month, Sprint and T-Mobile moved one step closer to merging.
The multibillion-dollar deal just got the green light from the Committee on Foreign Investment, the government panel that vets certain deals involving investors outside the United States.
The companies also say Justice, Defense and other departments have withdrawn their requests to delay the deal.
If the merger does happen, there will be three wireless providers in the U.S.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)