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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Ranking: 95

AT&T Inc.

AT&T provides broadband and other wireline and wireless communication services to mass market, business, government and wholesale customers. AT&T is the largest U.S. provider of local and long distance telephone services, and DSL Internet access and the second largest provider of wireless service in the United States, with over 77 million wireless customers, and more than 150 million total customers.

Federal Contract $: $ 743.0m

Total Number of Instances: 11

Total Misconduct dollar amount: $ 34.3m

Instances of Misconduct

1. EEOC v. AT&T (Disability Discrimination)

The Equal Employment Opportunity Commission (EEOC) filed a lawsuit under the Americans with Disabilities Act (ADA) alleging that AT&T Services, Inc. (d/b/a Southwestern Bell Telephone Company) unlawfully refused to hire Michael Rappe in February 2007 because he has diabetes. In January 2011, it was reported that AT&T settled the case for $60,000.... more»

2. Hyldahl v. AT&T (FMLA Violation)

Former AT&T employee Mary-Jo Hyldahl suffers from posttraumatic stress disorder (PTSD) and depression, the treatment of which required her to take more than 400 hours of leave from her job under the Family and Medical Leave Act (FMLA) between 2001 and 2006. AT&T fired her in January 2007 for “FMLA fraud.” A jury determined that AT&T interfered with Hyldahl’s rights under the FMLA. She was awarded over $500,000 in back pay, damages, and attorney fees.... more»

3. Waters v. AT&T (Overtime Pay)

Current and former employees of AT&T Services who worked for the company in California as senior database administrators, senior IT analysts (or senior analysts), and senior QC test analysts between August 2005 and September 2010 filed a class-action lawsuit claiming they were wrongly denied overtime pay. They also claimed AT&T failed to provide meal periods, failed to authorize and permit rest breaks, failed to provide proper pay statements, and failed to pay all wages due at time of termination. In May 2010 AT&T agreed to pay $17 million to settle the case.... more»

4. Overbilling the Federal Government for Telephone Services

AT&T Corp. subsidiary AT&T Communications-East, Inc. paid the United States nearly $3 million to resolve a False Claims Act lawsuit alleging that it defrauded federal agencies by overcharging them for telephone service from December 1998 through December 2001. AT&T provided telephone services to the government as part of the FTS2000 contract administered by the General Services Administration. AT&T was alleged to have charged agencies more than the actual costs and fees AT&T paid to local telephone companies for access to their phone lines.... more»

5. Civil Contempt

AT&T agreed to pay more than $2 million as part of a civil settlement with the Department of Justice to resolve AT&T’s alleged violations of two court orders entered in connection with AT&T’s acquisition of Dobson Communications Corporation. Under a March 2008 consent decree, AT&T was required to divest mobile wireless telecommunications businesses in three rural service areas. Under the consent decree and a related court order, AT&T was required to ensure that the divested businesses were operated independently of AT&T and that AT&T did not influence how they were managed. AT&T was also required to preserve the confidentiality of information material to the operation of the divested businesses and not give unauthorized personnel access to such information. The government alleged AT&T failed to separate confidential customer account information of the divested businesses from its own customer records and to take other actions needed to prevent unauthorized disclosure. As a result, AT&T personnel obtained unauthorized access to the divested businesses’ competitively sensitive customer information and in some situations used it to solicit and win away the divested businesses’ customers. The government also alleged that AT&T, without authorization, waived early termination fees for several customers of the divested businesses to facilitate switching their wireless service from the divested businesses to AT&T.... more»

6. Edwards v. Southwestern Bell Telephone (Racial Discrimination)

Lakecious Edwards, a service representative for AT&T (f/k/a Southwestern Bell Telephone), was awarded over $400,000 by a jury that found race was a motivating factor in the company's repeated failure to promote her. The jury also found that the company created a hostile work environment and retaliated against Edwards when she complained.... more»

7. Do-Not-Call Violation

The Federal Communications Commission fined AT&T Corp. for allegedly phoning customers who had asked not to be called again. The FCC claimed AT&T repeatedly solicited 29 consumers on 78 separate occasions over a period of 12 months after they had asked AT&T telemarketers not to call, a violation of a longstanding FCC rule that requires telemarketers to honor company-specific no-call lists. The fine was ultimately reduced to $490,000 (from $780,000) after the company disputed several of the complaints. AT&T admitted no wrongdoing as part of the settlement.... more»

8. Fair Credit Reporting Act Violation

Sprint Corporation and AT&T Corp. paid $1.125 million and $365,000, respectively, to settle Federal Trade Commission charges that they failed to notify certain applicants for telephone service of their rights, in violation of the Fair Credit Reporting Act (FCRA). The FTC charged that both AT&T and Sprint placed conditions or restrictions on consumers’ service, without disclosing information required by the FCRA.... more»

9. False Claims Involving the E-Rate Program

AT&T Technical Services Corp. (AT&T-TSCO) paid over $8.2 million as part of a civil settlement relating to allegations that the company violated the False Claims Act in connection with the Federal Communication Commission's E-Rate program, which uses funds collected from customers to provide Internet service to needy schools and libraries. AT&T-TSCO was alleged to have engaged in non-competitive bidding practices for E-Rate contracts, claimed and received E-rate funds for goods and services that were ineligible under the program, overbilled the E-Rate program for services provided, and facilitated a payment or profit to the applicant from E-Rate funds.... more»

10. Religious Discrimination

Glenn Owen and Jose Gonzalez, two AT&T employees who are Jehovah's Witnesses, alleged AT&T denied them a "reasonable accommodation" of their religious beliefs when it fired them after they attended a Jehovah's Witness convention. The jury found AT&T had discriminated against them in violation of Title VII of the Civil Rights Act of 1964 and awarded them $756,000 in damages. The judge also ordered AT&T to reinstate both men.... more»

11. False Claims Involving E-Rate Program in Missouri

AT&T Missouri (f/k/a Southwestern Bell Telephone L.P.) agreed to pay the United States $1.4 million to settle a civil lawsuit alleging that the company violated the False Claims Act in connection with the Federal Communications Commission's E-Rate program, which uses funds collected from customers to provide Internet service to needy schools and libraries. The government contended that AT&T Missouri provided false information to the E-Rate program, engaged in non-competitive bidding practices for E-Rate contracts, colluded with Kansas City school officials to award contracts to the company, extended contracts in violation of E-Rate rules and provided meals and other inducements to school system employees.... more»