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Sprint (S -4.8%) sells off after New York's AG files a $300M+ tax fraud suit. The carrier is...

Sprint (S -4.8%) sells off after New York's AG files a $300M+ tax fraud suit. The carrier is accused of failing to bill customers for $100M+ worth of taxes over 7 years, in order to make its service more competitive. Fears likely exist that other states will file similar suits.
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Comments (4)
  • JayXu
    , contributor
    Comments (266) | Send Message
     
    Man...should have sold my s shares around $2.90....
    19 Apr 2012, 11:37 AM Reply Like
  • samsam2
    , contributor
    Comments (11) | Send Message
     
    My guess is T still has a stick of ginger up its butt for how S objected to T / T-Mobile combination, and they found (paid for?) a whistleblower to make S's life miserable. Capitalism at its finest.
    19 Apr 2012, 02:39 PM Reply Like
  • AggGrow
    , contributor
    Comments (198) | Send Message
     
    This doesn't make any sense. "Schneiderman said Sprint's decision not to collect and pay taxes was part of the Overland Park, Kansas-based company's nationwide effort to lure customers from rivals such as AT&T Inc and Verizon Wireless, and make its service $4.6 million less expensive per month"

     

    1. Taxes are billed outside of the quoted rates by all carriers. How would this make them appear 'less expensive'? They all hide the taxes, and all customers know that taxes are collected.

     

    2. I am not a New Yorker - maybe one can weigh in - but my bill has taxes - about 9 line items actually, and a huge number. Sprint doesn't care, it just passes them through. Has for the 3+ years I've been a customer.

     

    3. The wording "company's nationwide effort to lure customers from rivals such as AT&T Inc and Verizon Wireless" seems awfully suspect. It this were just about tax monies, would a public figure make such an inflammatory statement?

     

    I can't imagine that Sprint would willfully do such a stupid thing. Certainly, there was noting of substance to gain and a lot to lose. Cannot possibly be true. Something else is going on here.
    19 Apr 2012, 11:50 AM Reply Like
  • AggGrow
    , contributor
    Comments (198) | Send Message
     
    Does anyone know which 7 years this AG is discussing?
    19 Apr 2012, 12:01 PM Reply Like
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