Sprint has been handed a defeat in its attempt to escape a $300 million sales tax case brought against it by the State of New York.
New York alleged that Sprint underpaid sales taxes by as much as $130 million during a multi-year period beginning in 2005. Sprint sought to dismiss the case, but was shot down by an appeals court. The decision leaves New York open to pursue Sprint under the state’s False Claims Act, which lets the state charge three times the amount underpaid in taxes.
Sprint said it was disappointed with the ruling and is exploring its options.