KCUR News
8:21 am
Wed October 14, 2009

AT&T Settles Lawsuit Over Internet Access At Schools

Jefferson City, MO – AT&T Missouri has agreed to settle a lawsuit that accuses the company of violating the False Claims Act in connection with an internet access program for schools.

The E-Rate program enables schools and libraries in low-income neighborhoods to gain access to the Internet. Justice Department spokesman Charles Miller says the suit accused AT&T Missouri of colluding with school officials in Kansas City to engage in non-competitive bidding practices:

Miller: "The U.S. contended that AT&T Missouri provided false information to the E-Rate program and otherwise violated the program's requirements."

AT&T Missouri released a statement, which says, in part, that it's committed to helping ensure all eligible K-12 schools and public libraries have affordable access to advanced telecommunications services. The company will pay 1-point-4 million dollars and admit no wrongdoing.