AT&T Sued in a Whistleblower Lawsuit

A whistleblower lawsuit filed by the U.S. Justice Department against AT&T claims the company knew that people from other countries stole from American merchants through the calling service it offered for the deaf.

The department filed its whistleblower lawsuit in October 2010 in Pittsburgh federal court and alleged that AT&T allowed criminals to take over the online-based telephone system and used it to improperly charge the government for the reimbursement of calls, according to the New York Times.

The lawsuit was filed under a provision under the False Claims Act, which allows U.S. citizens to act as whistleblowers to file complaints against companies that indirectly or directly committed fraud against the government.

The lawsuit stems from a free phone service that requires carriers to accommodate those who are speech or hearing-impaired, under the Americans with Disabilities Act. The act allows carriers to seek reimbursements from the Federal Communications Commission for calls using the service that originate in the United States.

The whistleblower lawsuit claims that AT&T failed to make certain that the users of the FCC program were eligible. It also alleges that AT&T let thousands of phone calls to be made on the system from other countries looking to defraud U.S. merchants. The plaintiffs accuse AT&T of unjustly receiving more than $16 million from the government to offer the services.

If you or someone you know has information about practices that are defrauding the government, contact Sokolove Law for a free legal consultation.