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: Alibaba surges in Wall Street debut (Update)

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

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

Alibaba IPO to boost employee fortunes to $8 bn

Sep 19, 2014

Employees of Chinese e-commerce giant Alibaba will see their fortunes swell to nearly $8 billion as the company prepares a massive US stock offering that could be valued at $25 billion.

Alibaba mega IPO caps founder Jack Ma success tale

Sep 19, 2014

When Jack Ma founded Alibaba 15 years ago he insisted the e-commerce venture should see itself as competing against Silicon Valley, not other Chinese companies. That bold ambition from a time when China was ...

User comments : 0