The New York State Court of Appeals has rejected Sprint Nextel’s motion to dismiss a qui tam action brought by the New York State Attorney General under the New York State False Claims Act. People of the State of New York, et al. v. Sprint Nextel Corp, et al., No. 127 (N.Y., Oct. 20, 2015). The Court of Appeals held that the New York State AG’s complaint sufficiently set forth a cause of action under the False Claims Act, which was expanded in 2010 to cover “claims, records or statements made under the tax law,” noting that in response to the motion to dismiss, the court is required to accept all facts alleged in the complaint as true, and to accord the plaintiff – here, the AG – the benefit of every possible favorable inference. The complaint alleged that Sprint knowingly violated the Tax Law, engaged in fraudulent and illegal acts, and submitted false documents. Sprint was seeking to dismiss the complaint for failure to state a cause of action under CPLR 3211. The Court’s decision now allows the case to proceed and the AG to pursue discovery.