Two former Sprint Corp. executives who bought tax shelters from Ernst & Young LLP that were subject to a criminal probe have sued the U.S. government over claims they were unfairly forced to resign from the Overland Park-based company in 2003 as a result of the scandal.
They are seeking almost $160 million in combined damages.
Bill Esrey, the former chairman and CEO, and former president and chief operating officer Ronald T. LeMay said in a complaint filed Friday in a New York City federal court that Ernst & Young “withheld material information” about civil and criminal investigations and that the U.S. IRS also “helped hide information” about the probes from the executives.
Amy Call Well, a spokeswoman for Ernst & Young, had no comment on the complaint. Representatives of the Justice Department didn’t respond to a request for comment.