U.S. government sues Sprint

Posted Mar 5, 2014

The U.S. government is claiming that Sprint added excessive charges for court-ordered wiretaps to the tune of 58% in inflated charges, which is more than $21 million in overpayment. The government filed a complaint against Sprint at the U.S. District Court in San Francisco on Monday.

The complaint says that government agencies like the FBI and Drug Enforcement Administration were allegedly overcharged $21 million for wiretaps by Sprint.

“Sprint inflated its charges by approximately 58 percent,” stated the complaint. “As a result of Sprint’s false claims, the United States paid over $21 million in unallowable costs from January 1, 2007 to July 31, 2010.”

As one of the largest wireless carriers in the U.S., Sprint is required to give information to the authorities for investigations. This information is gathered through wiretaps that needs equipment installation. The government generally reimburses the equipment.

In the complaint filed against Sprint, the government claims that the mobile carrier submitted “false claims for reimbursement” of expenses accrued with the wiretap equipment installations.

Sprint said that they operated within the bounds of the law and cooperated fully with the government investigations. The government is asking for triple damages and unspecified civil fines.

[Source: CNET]