La. Pension Sues Sprint Over Sales Tax Issue

May 2, 2012 ( - Sprint Nextel Corp. was sued by a Louisiana pension fund after New York’s attorney general accused the company of deliberately failing to pay sales taxes.

According to the complaint filed in a New York state court by the Louisiana Municipal Police Employees’ Retirement System, Sprint officials, including Chief Executive Officer Daniel Hesse, failed to properly oversee the company and subjected it to liability, reports The Kansas City Star.

“Despite direct and actual knowledge of this tax dodging scheme, the individual defendants are continuing their efforts to evade the taxes owed to the state of New York and are turning a blind eye to the ongoing illicit conduct,” the pension fund said in the complaint.

New York Attorney General Eric Schneiderman sued Sprint in April, claiming the company failed to collect and pay more than $100 million in New York sales taxes on flat-rate calling plans. Schneiderman said he is seeking three times the underpayment plus penalties.

The Louisiana pension fund said the understatement of tax liability may require a restatement of Sprint’s financial results.

The company previously denied the attorney general’s claims and said it would fight the office’s lawsuit, reports The Kansas City Star.