Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Sunday, July 14, 2024 | Back issues
Courthouse News Service Courthouse News Service

AT&T Pays $1.4 Million to Settle Claim That It Took Money From Poor Schools

(CN) - AT&T Missouri will pay Uncle Sam $1.4 million to settle claims that it cheated a federal program for needy schools and libraries. AT&T used bribes, lies, fixed bids and collusion to suck money from the FCC's E-Rate program, which helps poor schools and libraries connect children to the Internet, according to the complaint.

AT&T fka Southwestern Bell Telephone violated the False Claims Act by providing false information, engaging in noncompetitive bidding for E-Rate contracts, colluding with officials in the Kansas City, Mo., School District to award contracts to AT&T, extending contracts in violation of E-Rate rules and providing meals and other bribes to school officials, according to the complaint.

The E-Rate is supported by fees collected from telephone users.

American Fiber Systems filed the False Claims Act complaint against AT&T in Missouri. American Fiber will receive $195,000 as part of the settlement.

Follow @@joeharris_stl
Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.