Feds hit AT&T Inc. with a $2 million fine after the telecommunications giant allegedly violated court orders during its acquisition of Dobson Communications Corporation.
According to federal prosecutors, AT&T failed to comply with a 2008 consent decree and a related court order, which were part of the company’s merger deal. The consent decree required AT&T to divest mobile wireless telecommunications businesses in three rural service areas while ensuring independence and confidentiality of customer information.
The feds accused AT&T of failing to separate confidential customer account information from its own records and taking unauthorized actions that could have influenced the divested businesses’ operations. The company also allegedly sought to retain customers by waiving early termination fees without proper authorization.
Deborah A. Garza, Acting Assistant Attorney General for the Antitrust Division, emphasized the importance of companies adhering to court orders, stating, ‘When companies fail to comply with a court order, the Antitrust Division will take swift and certain action.’
The Federal Communications Commission (FCC) played a role in approving the AT&T-Dobson merger, and the feds coordinated their investigation with the FCC.
AT&T, one of the largest mobile wireless providers in the U.S., serves around 73 million customers. The civil contempt claim underscores the serious consequences companies face when they ignore court orders.
Related Federal Cases
Key Facts
- State: Florida
- District: Middle District of Florida
- Category: White Collar Crime
- Source: DOJ Press Release
🔒 Get the grimiest stories delivered weekly.
Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime