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Sprint accused of overcharging US for spying assistance

John Ribeiro | March 4, 2014
Sprint has been sued in a federal court for allegedly overcharging federal law enforcement agencies for surveillance related services by over 50 percent.

Around June 2010, Sprint revised its cost model for intercept charges to remove the costs of financing its investment in CALEA equipment, and lowered its intercept charges from Aug. 1, 2010. But it has failed or refused to refund the overpayments made by the law enforcement agencies up to Aug. 1, 2010 across 29,000 claims for reimbursement made by the carrier, according to the complaint.

The lawsuit is filed under the False Claims Act, which allows for the recovery of up to treble damages. The U.S. has asked for a jury trial.

 

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