U.S. government claims Sprint overcharged them $21 million in expenses

Did you ever feel that your wireless carrier was trying to overcharge you on your monthly bill? In essence, that's exactly what the United States government believes Sprint is attempting to do and it's going to court to prove it.

Reuters reports that the Obama administration has filed a lawsuit this week against Sprint, claiming that between 2007 and 2010 the company sent the government bills that were a total of $21 million higher than they should have been. The government is supposed to compensate Sprint and other carriers for costs they might incur because of court-ordered surveillance activities.

However, the Justice Department claims Sprint "knowingly submitted false claims"  for other expenses that were not related to surveillance, such as upgrades to the company's equipment and services.  It added, "Because Sprint's invoices for intercept charges did not identify the particular expenses for which it sought reimbursement, federal law enforcement agencies were unable to detect that Sprint was requesting reimbursement of these unallowable costs."

For its part, Sprint has said that the bills it has sent to the U.S. government are correct and legal. A spokesperson for the company said, "We have fully cooperated with this investigation and intend to defend this matter vigorously."

Source: Reuters | Sprint image via Shutterstock

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14 Comments

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That is funny they are complaining about ~ .oo2% of the operating fiscal deficit, ~ .0001% of the national debt, and ~ .00002% of US unfunded liabilities... Don't imagine we will see them saying that anytime soon though...

There isn't a single wireless carrier that doesn't over charge for what you get. Same with cable companies, telcos, gas companies, etc....

This is sure funny because Sprint actually feels it was legitimate. So .. I heard from my US Department of Justice friend that Obama is actually pissed over the foreign ownership of Sprint, and he's just playing hard ball over it.

Lmfao.