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Feds sue Sprint over alleged overcharging

March 03, 2014|By Marc Lifsher
  • Sprint store in New York City. The federal government is suing the telecom, alleging overcharges.
Sprint store in New York City. The federal government is suing the telecom,… (Victor J. Blue/Bloomberg )

Federal prosecutors are suing Sprint Corp., for allegedly overcharging the government for reimbursements of expenses related to investigative wiretaps and other electronic surveillance.

The civil complaint filed Monday under the U.S. False Claims Act said that Sprint illegally boosted its charges by about 58%, costing federal law enforcement agencies over $21 million between Jan. 1, 2007, and July 31, 2010.

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Sprint of Overland Park, Kan., said it did nothing wrong and would vigorously contest the accusations. "The invoices Sprint has submitted to the government fully comply with the law," said spokesman John B. Taylor.

The alleged overcharging, said Melinda Haag, the U.S. attorney for the Northern District of California, caused "significant losses to the government's limited resources."

The lawsuit was the result of a joint investigation by the U.S. Department of Justice Office of Inspector General.

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