Search Site

Whistleblower Fights for $1.4 Billion FCA Claim Against AT&T to Continue

In the face of a bid for a dismissal, a government contractor for the city of Los Angeles is fighting to have his False Claims Act suit worth $1.4 billion against AT&T proceed. In the case, he alleges the company purposefully denied the various federal government discounts given out to commercial customers.

The whistleblower argued that the case should proceed, as it adequately alleges that AT&T was guilty of wrongful billing of the federal government by not giving it the same discounts as commercial customers, which is required by federal law. AT&T has argued the whistleblower’s claims are mere speculation without any corroborating evidence.

However, the plaintiff argues he is able to explain exactly how AT&T and a number of subsidiary firms violated these rules, saying he has specific inside knowledge of the rates given to commercial clients versus the federal government. He also added that at this stage of the claim, he is not yet required to provide hard evidence.

First amended complaint

The lawsuit was initially filed in 2013, but the first version was dismissed by a U.S. District Court judge because it only involved government contracts at the city and state level, and not the federal level as required for an FCA suit. The new complaint contains most of the same allegations as the previous version, but now suggests false claims were sent out to over 700 federal agencies. The claims could total more than $2.6 billion in fraudulent billing.

It is not clear yet how the case will proceed or if it will end up being worth the enormous $1.4 billion, but it could be a significant news story moving forward because it involves one of the largest companies in the United States.

For more information on how FCA-related lawsuits work, meet with the knowledgeable Dallas attorneys at Whistleblower Law for Managers today.

Awards & Honors
Our Office
  • Dallas Office
    4514 Cole Ave
    Dallas, Texas 75205
    Phone: 214-306-8045
    Fax: 469-729-9926
As Seen In
In his new book, "Standing Up to China: How a Whistleblower Risked Everything for His Country," former client & Author, Ashley Yablon, quotes Attorney Steve Kardell about Whistelblower Law.
  • "Steve Kardell was terrific in representing me in some very adversarial discussions with Citigroup and also later represented me in my testimony before the Financial Crisis Inquiry Commission."  -Richard Bowen, Citigroup Whistleblower

  • "Incredible knowledge of employee related concerns and equally brilliant knowledge of health care regulations, standards of practice. I would recommend this firm to anyone."  -V.B.

  • "Reaching out to Steve Kardell was the best decision I made. His ability to provide immediate insight and direction was very powerful, and a huge relief during a very stressful time period. For anyone struggling with a whistleblower situation, I would highly recommend at least speaking with Steve. After a 10 minute call with him, I had a better understanding of what I was dealing with. Even better, he gave me some immediate hope. In the end Steve did a better job than I thought was possible. Steve was able to get in contact with people in my organization, that I didn’t have access to. Because of his years of experience, he already has contacts in many organizations in Dallas. The entire situation was handled peacefully. I was impressed by his ability to “keep the peace”–rather than creating a battle with the organization. The reason I didn’t reach out to a lawyer initially, was because I thought it would mean an immediate end to any hope of a positive relationship with the company. Steve was able to address my concerns, and in the end I was able to continue to work for them."  -KS

  • "Never thought my career would end like it did after 30 years of service. I was part of the first round of the so called reduction of force. I asked myself how can I be part of this with 30 years of seniority. How did they pick these 90 plus employees? Now, the culture of this organization made you question every decision they made. It wasn’t what you knew it’s was a culture of who you know. Nonetheless, I did not accept their severance package. I immediately starting looking for an attorney who would take on my case. After the initial call to Steve I had hope again. He was open and honest about everything and reassured me he would do his best for me, and he did. I had an awesome outcome. Thanks Steve you’re the best."  -S.S.