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Leading Telecom Provider Will Pay Large Fine To The State of Missouri

AT&T will pay a fine of $7.45 million to the State of Missouri, to settle a back-taxes lawsuit, which brings the total amount that the city has received from multiple telecom settlements to over $25 million. The settlement stems from a lawsuit that was filed by the city in 2004, claiming Defendants in the case were leading telecom providers – AT&T, Sprint, Alltel, Cingular, and Nextel. When brought before the U.S. District Court, the court ruled in favor of the city when deciding on issues such as wireless service, but matters concerning landlines are yet to be discussed. From this settlement, the city has collected $25,128.788 from the telecom providers. “The city elected not to join a class-action lawsuit with 240 other Missouri communities and that decision was provided to be a good one” due to the fact that “the lawsuit resulted in a $218 million settlement,” in which “Springfield would have received only about $5.5 million had it joined the class.”

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