AT&T Will Pay $8.2 Million for Violating Disadvantaged Schools Program

The Department of Justice announced the settlement of a False Claims Act case involving AT&T Inc. on February 13, 2009. AT&T has agreed to pay $8,266,414.33 to resolve allegations that it violated the Federal Communication Commission’s E-Rate program. The E-Rate program enables disadvantaged schools and libraries to establish connections to and utilize the internet. Through funding collected from telephone users, the program provides schools with financial support to maintain their hardware and pay for service fees.

According to the DOJ, the case alleged that AT&T engaged in non-competitive bidding practices for E-rate contracts, received E-Rate funds for goods and services that were ineligible for the program’s discounts, and overbilled the program.

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