US sues Sprint over company's wiretap expenses
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US sues Sprint over company's wiretap expenses
Associated Press Updated: March 3, 2014 at 7:15 pm Published: March 3, 2014
SAN FRANCISCO (AP) Federal officials filed a lawsuit Monday alleging that Sprint Communications Inc. overbilled government agencies $21 million for wiretap services.
The lawsuit filed federal court in San Francisco alleges that that subsidiary of Sprint Corp. collected unallowable expenses from the FBI, U.S. Bureau of Alcohol, Tobacco and Firearms and other government agencies while carrying out court-ordered wiretaps and other electronic intercepts of its customers.
Communication companies ordered by courts to intercept customers' communications are allowed to recoup the cost of installing and maintaining the wiretaps.
The lawsuit arises from a dispute between communication companies and the federal government over the expense of installing and maintaining wiretaps. In 1994, lawmakers passed a law requiring communication companies to upgrade their equipment and facilities to ensure they can comply with court orders seeking wiretaps of their customers.