May 8, 2006

AT&T has agreed to settle several class-action lawsuits for a sum of $150 million.

These news are according to the company’s quarterly filing with the Securities and Exchange Commission.

The suits had been filed in response to the offering of AT&T Wireless Services Inc. tracking stock in 2000, and the plaintiffs had demanded more than $2.1 billion in damages, AT&T reported.

Last month, the parties agreed to the $150 million settlement, which still must receive court approval.

Cingular Wireless L.L.C., which acquired AWS in late 2004 and is controlled by AT&T, will be “allocated 70 percent of any liabilities arising out of these actions,” according to the filing; the remaining liability would be split equally between AT&T Corp. and Comcast Cable Communications Inc.

AT&T also noted in its filing that the settlement would not result in additional expenses for Cingular or AT&T.

Source: RCR