AT&T To Pay $3.5 Million to Settle U.S. Government Claims

The Wall Street Journal (online registration required): WASHINGTON— AT&T Inc.has agreed to pay the federal government $3.5 million to settle claims it knowingly overbilled a program for the hearing-impaired.

The government alleges AT&T billed the Federal Communications Commission $16.5 million over a two-year period for an IP Relay service, which allows deaf users to send audible messages via the Internet, despite knowing the vast majority of calls were from con artists in Nigeria and other foreign countries.

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