Sprint settles wiretap fraud whistleblower case for $15 million

Sprint has settled a whistleblower case with the Department of Jiustice for $15 million resolving allegations that Sprint had falsely inflated the cost of fulfilling government surveillance orders. Telephone companies are legally required to comply with court orders for specific wiretap requests but they may seek reimbursement for “reasonable expenses”

Reasonable expenses means the cost of performing the wiretap and not the cost of making surveillance friendly changes in their network. Sprint was alleged to have billed upgrading costs to its bills to Uncle Sam and the Complaint said it inflated its bills by 58%.

Jeffrey Newman represents whistleblowers. He did not represent the whistleblowers in this case.