AT&T’s Wisconsin Bell Settles Whistleblower Case for $55 Million

WASHINGTON, March 12, 2026 – An AT&T subsidiary agreed Wednesday to pay $55 million to settle a nearly two-decade-old whistleblower lawsuit.

The case, first filed in 2008, stemmed from telecom auditor Todd Heath’s claims that AT&T’s Wisconsin Bell overcharged schools participating in the E-Rate program, which provides discounts on internet bills. He sued under the False Claims Act, which mandates higher penalties for fraudulently seeking government cash.

The settlement, which includes $25 million in attorney’s fees, still has to be approved by the government. Whistleblowers who sue under the FCA are entitled to receive 15 to 30 percent of the amount the government recovers. That would be between $8.25 million and $16.5 million in this case.