Verizon, AT&T settle overcharging whistleblower case for $116 million

guest · Sep 25, 2020

Verizon, AT&T settle overcharging whistleblower case for $116 million
Updated: The lawsuit alleged that both telecoms giants overcharged government agencies for over a decade
September 25, 2020
https://www.zdnet.com/article/verizon-at-t-settle-overcharging-whistleblower-case-for-116-million/

Verizon and AT&T have agreed to pay $116 million to settle a lawsuit claiming that both carriers have overcharged government agencies for over a decade.

The announcement, made on Thursday, relates to a lawsuit in which 30 government entities and a whistleblower were represented by Constantine Cannon LLP and Susman Godfrey LLP.
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Back in 2012, whistleblower entity OnTheGo Wireless, founded by Jeffrey Smith, accused Verizon and AT&T of deliberately failing to provide "cost-saving opportunities" to government entities in California, at both state and local levels.

[...] OnTheGo claimed that Verizon and AT&T "overcharged California government customers for wireless services" by "knowingly ignoring" two cost-saving requirements demanded in multibillion contracts offered to state and local government bodies.
However, the lawsuit alleged that failures to live up to these promises resulted in organizations paying "hundreds of millions" of dollars more than they should have.
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Approved on Thursday in a California court, the settlement agreed upon will require Verizon to pay $68 million and AT&T $48 million, a combined figure of $116 million.
As the whistleblower, OnTheGo expects to receive approximately 40% of the settlement.
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Verizon, AT&T settle overcharging whistleblower case for $116 million

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