An investigation for current long-term investors in Sprint Nextel Corporation (NYSE:S) shares over potential breaches of fiduciary duties by certain officer and directors was announced and NYSE:S stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 04/23/2012 -- An investigation on behalf of investors in Sprint Nextel Corporation (NYSE:S) shares was announced over possible breaches of fiduciary duties in connection with potential wrongdoing by certain directors and officers at Sprint Nextel Corporation (NYSE:S) over allegations that Sprint Nextel Corporation knowingly evaded New York state taxes.
Investors who are a current (long-term) stockholders of Sprint Nextel Corporation (NYSE:S) have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses concerns whether certain directors and officers at Sprint Nextel Corporation (NYSE:S) breached their fiduciary duties by failing to disclose that Sprint Nextel Corporation knowingly evaded New York state taxes.
On April 19, 2012, the New York Attorney General sued Sprint Nextel Corporation under the New York False Claims Act for a potentially more than $300 million over deliberately failing to pay sales taxes for seven years. The New York Attorney General alleges that Sprint Nextel's scheme is ongoing and as a result of Sprint's unlawful actions, its underpayment of New York sales taxes is growing by about a $210,000 every week, over $30,000 a day.
The lawsuit claims that Sprint Nextel Corporation has underpaid and under-collected sales and local millions of dollars in New York state and local sales taxes on its calling plans for more than seven years and concealed this practice from taxing authorities, its competitors, and its customers. The New York Attorney General said in a statement that all of Sprint Nextel’s major wireless competitors, including Verizon, AT&T, T-Mobile, and MetroPCS, have followed the law regarding these taxes. And the decision by Sprint Nextel not to collect and pay these taxes arose out of a nationwide effort by Sprint to obtain an advantage over its competitors. Sprint Nextel concluded that this practice would position its calling plans as cheaper than competitors’ plans by $4.6 million per month, collectively, because of sales taxes not collected and paid, so the NY Attorney General.
The lawsuit by the New York Attorney General follows a whistleblower lawsuit, also called a "qui tam" action, filed in March 201. The whistleblower alleged that Sprint Nextel Corporation did not collect and pay sales taxes on flat-rate access charges for wireless calling plans, costing state and local governments allegedly more than $100 million.
“By deliberately evading sales taxes, Sprint cost state and local governments over $100 million that could have been used for critical services and much needed resources that our state and its citizens need given the challenging economic times we are in,” said Attorney General Schneiderman
The Attorney General has taken over the whistleblower action on behalf of New York's taxpayers and it liable Sprint Nextel Corporation could be required to pay over $300 million to New York state and local governments, including school districts, so the NY Attorney General.
In a statement on April 19, 2012 Sprint Nextel denied the allegations and said they “collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law.”
Shares of Sprint Nextel Corporation (NYSE:S) closed on April 20, 2012 at $2.37 per share.
Those who are current long term investors in Sprint Nextel Corporation (NYSE:S) shares, have certain options and should contact the Shareholders Foundation.
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