AT&T wins conspiracy verdict, loses contract claim

AT&T Inc. didn't engage in a conspiracy to fix the rate for long-distance surcharges paid by customers, a Kansas jury said, rejecting a $400 million claim.

The federal jury in Kansas City today ordered AT&T to pay $16.9 million to California residential customers who alleged breach of contract in the same trial.

Business customers had sued in a national class action, claiming that one of AT&T's predecessor companies violated U.S. antitrust law by fixing prices on Universal Service Fund surcharges from August 2001 through March 2003. The jury found no conspiracy.

The case was brought in 2002 against New York-based AT&T Corp. SBC Communications Inc., based in San Antonio, acquired AT&T in November 2005 for $22 billion and changed the combined company's name. AT&T Inc., the largest U.S. telephone company, is based in Dallas.

AT&T has its Midwest headquarters in Hoffman Estates and offices in downtown Chicago.