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AT&T pays nearly $3 million in qui tam suit

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

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