AT&T Agrees To $150M Settlement
DOW JONES NEWSWIRES
Saturday, May 6, 2006
AT&T Inc. said Friday that it agreed to a $150 million
settlement of class-action lawsuits related to the offering
of AT&T Wireless tracking stock in 2000.
(The headline, "AT&T Agrees To Pay $150M To Settle
Class-Action Suits," published at 6:34 p.m. EDT, incorrectly
stated that AT&T would pay the entire amount of the
WASHINGTON (Dow Jones)--AT&T Inc. agreed to a $150 million
settlement of class-action suits tied to the offering of
AT&T Wireless tracking shares in April 2000.
Plaintiffs in the suits demanded more than $2.1 billion in
damages related to the offer, according to AT&T's quarterly
report filed with the Securities and Exchange Commission.
Last month, the parties in the suit agreed to settle for
$150 million, pending court approval.
With the split-off of AT&T Wireless and AT&T Corp., Cingular
Wireless, which acquired AT&T Wireless, will be allocated
70% of any liabilities arising out of the actions to the
extent they relate to AT&T Wireless tracking stock, AT&T
The remaining liability will be allocated equally between
AT&T Corp. and Comcast Corp.'s (CMCSA) Comcast Cable
The settlement, if approved, wouldn't result in any
additional expenses being accrued by Cingular or AT&T Corp.
Cingular is jointly owned by AT&T and BellSouth Inc (BLS).
-By Antonie Boessenkool,
Dow Jones Newswires; 202-862-7139; email@example.com