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AT&T to Pay $1.5 Million for Overcharging DC for Telecom Services

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AT&T agreed to pay $1.5 million to settle a lawsuit, in which it was accused of overcharging District taxpayers by violating its long-term contract with the city for cell phone and internet services.

DC Attorney General Karl Racine made the announcement in a press release on Monday, May 17.

“My office filed suit against AT&T to ensure that it fulfilled its contractual obligation to provide the District government with the least expensive cell phone and data services available,” Racine said. “We are pleased that after filing suit, AT&T immediately sought to resolve the case in a manner that results in making the District and its taxpayers whole.”

Racine’s office claimed in the lawsuit filed in February that AT&T submitted false invoices that did not implement contract requirements to provide cost optimization and the most cost-effective plans available.

The company deliberately invoiced DC for features, add-ons, and other services, which resulted in improperly charged millions that were paid with taxpayer funds, according to the Office of the Attorney General (OAG).

The contract between the District and AT&T, which went into effect in August 2012, aims at providing the most cost-effective plans and the lowest prices available for the city and other government bodies.

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