US Justice Department disputes wiretapping fees charged by Sprint in lawsuit

In a San Francisco court, the US federal government is looking to reduce the wiretapping fees billed by Sprint Communications Inc, the Washington Times said in a report. According to the US Justice Department, the company had overcharged US law enforcement agencies by $21 million in fees for providing wiretapping services. The Associated Press had said that the wiretapping services were court-ordered and court-approved, and the services are used by agencies including the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives to aid them in their investigations.

The Washington Times said that communication companies in the US like Sprint are allowed by law to recoup the costs it had spent on providing wiretapping services from the government. However, companies are not allowed to overbill the US government or its agencies for the services it had rendered.

The Justice Department claimed in the lawsuit that Sprint had improperly included the costs it spent on wiretap equipment upgrades as mandated by the US Congress. The federal agency added that Sprint should not have passed these costs along to government agencies. The Washington Time said that the Federal Communications Commission initially backed the US government regarding the matter, but had accused the communication company of receiving payments for the equipment upgrade between January 2007 and July 2010.

The newspaper said that the Justice Department is seeking triple the amount Sprint has overcharged, which is $63 million. The federal agency had claimed in the lawsuit that the amount was what it had lost. Moreover, the agency is also looking to obtain significant punitive damages.

Meanwhile, Sprint said the allegations were false. Sprint spokesman John Taylor told AP, "The invoices Sprint has submitted to the government fully comply with the law. We have fully cooperated with this investigation and intend to defend this matter vigorously."

Tags

US Justice Department, Sprint Communications Inc

© 2023 Lawyer Herald All rights reserved. Do not reproduce without permission.