The Federal government levied $15.5 million fine on Sprint Corp (NYSE:S) for overcharging wiretap. As per the reports, the company has agreed to pay this fine to settle the issue as soon as possible. The information was made public by the Justice department of the country.
Agreed To Pay Fine, But Not Accepted Any Wrongdoing:
The court found Sprint Corp guilty for overcharging wiretaps that were ordered by the government. Even though the company agreed to pay the entire amount, but it refused to accept that it had done something wrong. As per the reports published by Justice Department’s Northern California district, Sprint Corp didn’t accept any wrongdoing with regard to several accusations made against it.
Authorities state that the company hid a few charges regarding its system upgrades in the bills of wiretap service of the government during 2007-10. The national law allows telecommunication companies to charge certain expenses from the law enforcement agencies which incur for facilitating wiretap services. But in case these expenses cannot include various costs to upgrade facilities, equipments, services or system. Sprint Corp (NYSE:S) did this without letting the concerned authorities know about its intentions. As per the reports, the Federal Communication Commission refused all the carriers to pass along these upgrades in 2006.
The decision had a negative impact on company as it suffered with negative performance in the stock market. The shares of the company that once showed consistent growth were taken aback after this decision of the government hit the market. A reporter tries to get in touch with the management team of Sprint Corp (NYSE:S), but no one was available to comment on this issue. Market experts hope that this decision will surely impact other companies in this industry from doing anything like that without disclosing it to authorities. It will not only improve the business practices in the future, but also help the companies gaining trust of customers.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of USmarketsDaily.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: