AT&T and MCI reached an out-of-court resolution of all claims the two companies have had against each other, both before and after MCI filed Chapter 11 petitions in July 2002. The agreement includes resolution of AT&T’s call routing claims against MCI and MCI’s dismissal of its contempt of court motion against AT&T.
No other terms of the agreement were disclosed. http://www.att.comhttp://www.mci.com
- In September 2003, AT&T filed a lawsuit in federal district court against MCI/WorldCom and ONVOY seeking damages for, among other things, violations of the civil provisions of the federal Racketeering Influenced and Corrupt Organization (RICO) Act and other laws. AT&T accused MCI/WorldCom and ONVOY of orchestrating a scheme called the “Canadian Gateway Project,” in which they worked with other telecommunications companies to reroute MCI customers’ domestic phone calls through Canada to deceive and defraud AT&T into paying hefty termination fees for terminating calls to high-cost independent telephone companies in the U.S. AT&T said MCI/WorldCom should have properly kept the telephone traffic on its own network and been responsible for terminating access fees, if any, via intra-company transfers.