Sprint lost its bid to have a $300 million lawsuit dismissed and will now face the State of New York in court.
The office of New York Attorney General Eric Schneiderman alleges that Sprint failed to collect about $100 million in taxes from its New York-based customers over a period of seven years. Schneiderman wants triple the $100 million in owed taxes in damages.
Sprint hoped to have the lawsuit dismissed based on claims New York’s case violated the U.S. Constitution. The Court of Appeals rejected Sprint’s claim in a 4-1 decision. New York State may now proceed with its lawsuit.
Sprint did not immediately comment on the decision.
