Sprint Settles Federal Overcharging Complaint for $15.5 Million

KANSAS CITY, Mo. (The Kansas City Star/TNS) -

Sprint Corp. has agreed to pay $15.5 million to settle charges it had “defrauded federal law enforcement agencies when recovering its costs of carrying out court-ordered wiretaps, pen registers and trap devices,” according to the U.S. attorney in San Francisco.

A statement from the U.S. attorney’s office said that between 2007 and 2010, Sprint had included in its bill to federal agencies “the costs of making certain upgrades to its system” in addition to its costs for the intercept charges.

It said federal law required telecommunications companies like Sprint to upgrade their systems to handle law-enforcement requests, but the law forbade them from passing along those costs.

The statement said Sprint neither admitted nor denied any wrongdoing or liability.