US sues Sprint over company's wiretap expenses

Mar 03, 2014 by Paul Elias

Federal officials have filed a lawsuit alleging that Sprint Communications Inc. overbilled government agencies $21 million for wiretap services.

The lawsuit filed Monday in federal court in San Francisco alleges that that Sprint Corp. subsidiary collected unallowable expenses from the FBI and other while carrying out court-ordered wiretaps and other electronic intercepts of its customers.

Communication companies are allowed to recoup the cost of installing and maintaining wiretaps when courts order them to intercept customers' communications.

The Department of Justice claims in its lawsuit that Sprint also sought and received reimbursement for modifying its equipment and facilities to more efficiently intercept electronics communications. In 2006, the Federal Communications Commission prohibited carriers from passing on those expenses to the government.

A Sprint spokesman says the company denies the allegations.

Explore further: China criticizes Alibaba in report withheld until after IPO

5 /5 (1 vote)
add to favorites email to friend print save as pdf

Related Stories

Gov't sues AT&T over Internet calls

Mar 22, 2012

(AP) -- The Justice Department has sued to recover millions of dollars from AT&T Corp., alleging the company improperly billed the government for services that are designed for use by the deaf and hard-of-hearing who place ...

Sprint to pay $17.5 million to settle fee suit

Aug 12, 2009

(AP) -- Sprint Nextel Corp. has agreed to pay $17.5 million to settle a lawsuit claiming the fees it has charged customers who end their wireless contracts early are illegal.

Court lets stand telecom immunity in wiretap case

Oct 09, 2012

(AP)—The Supreme Court is leaving in place a federal law that gives telecommunications companies legal immunity for helping the government with its email and telephone eavesdropping program.

Recommended for you

Nintendo's nine-month profit jumps on cheap yen

6 hours ago

Nintendo reported a nearly six-fold increase in profit for the first three quarters of the fiscal year Wednesday and raised its earnings forecast as a cheap yen masked weak sales.

SK Hynix Q4 profit doubles to record level

6 hours ago

South Korean chipmaker SK Hynix said Wednesday its profits more than doubled in the fourth quarter to a record high, thanks to the soaring popularity of new mobile devices such as Apple's iPhones.

After setting iPhone record, what does Apple do next?

7 hours ago

Apple CEO Tim Cook says consumer demand for new iPhones has been "staggering" and "hard to comprehend." That helped the company report record-smashing earnings for its latest quarter and primed its stock ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.