AT&T Settles Shareholder Class Action Lawsuit

AT&T reached an agreement to settle a shareholder class action lawsuit underway in U.S. District Court for the District of New Jersey, three weeks after the trial began. The lawsuit sought damages of approximately $2.4 billion for purchasers of AT&T common stock from December 6, 1999 to May 1, 2000.



AT&T categorically denied any wrongdoing by itself or its officers, but agreed to pay the class $100 million, about four percent of the amount being sought at trial. The payment will be shared equally by AT&T and its former broadband subsidiary, which was spun off in 2002, under the terms of the separation agreement between those entities. In addition, AT&T intends to seek reimbursement from its insurers for the amounts to be paid.



The settlement is subject to final court approval. http://www.att.com