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#12: AT&T To Settle Lawsuit Over $900K Bill

**Editor’s Note: Originally published in July 2012, this story ranks No. 12 on B/OSS’ all time list, based on results from our weekly newsletters combined with online traffic.** 

It looks as though AT&T and a small Massachusetts business that was victimized by a phone hacker will avoid litigation.

AT&T has said it wants to drop a lawsuit against Ipswich, Mass.-based Todd Tool & Abrasive Systems and gave the president Michael Smith until 5 p.m. Monday to say whether he will drop his countersuit, the Boston Globe reported. Smith told the Globe he was seeking an extension of the deadline to consult with his lawyer before deciding whether to accept AT&T’s offer.

He probably would be wise to accept AT&T’s offer considering his previous statement to another newspaper that the damages AT&T is seeking could force his company into bankruptcy. AT&T reportedly sued the business for $1.15 million in charges and interest for a four-day period in September 2009 when $891,470 worth of phone calls were incurred.

The real injustice: As reported by The Salem News, the calls were made by a hacker apparently using a “dial-around” long-distance service and placed to Somalia without the knowledge of Todd Tool & Abrasive Systems.


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