June 28, 2006
AT&T has paid the United States $2,946,000 to resolve allegations that it defrauded federal agencies by knowingly charging them more than the actual costs and fees AT&T paid to local telephone companies for access to their phone lines.
AT&T provided telephone services to the government as part of a program administered by the General Services Administration that was designed to provide global telecommunications services to federal agencies.
The suit was the result of a whistleblower complaint filed under the qui tam provisions of the False Claims Act, a federal law that allows private individuals to sue on behalf of the United States.
Lawfuel reported on the settlement on June 27, 2006