It seems as if giant telecom companies like AT&T, Verizon and Sprint can charge what they choose for cell phone surcharges, however, one whistleblower has chosen to take on these giants.

A private consultant working for the government has recently filed a whistleblower lawsuit against AT&T which may be one of the biggest whistleblower lawsuits in history with $2.5 billion of taxpayer money at stake.

The whistleblower believes that AT&T, Sprint and Verizon were overcharging the government for telephone service. He claims that this fraud is very widespread and may involve government agencies numbering in the hundreds.

This consultant performs rate analysis and billing audits for hundreds of companies including the government.

This whistleblower filed the lawsuit under the federal False Claims Act.

What is the False Claims Act?

Claims of fraud in federal government programs fall under the federal False Claims Act. A private person who has evidence of fraud can begin what is called a qui tam lawsuit against the business under the federal False Claims Act.

In this case, the lawsuit was filed against AT&T regarding cell phone surcharges for government agencies.

Under the False Claims Act, whistleblowers are protected from retaliation from the business if they initiate a whistleblower lawsuit. The law also requires inside or original source information.

Because of this, usually, this person who initiates the qui tam lawsuit is an employee of the business or a former employee. In this case, he was a private consultant which has proved to be slightly problematic. The law does not require the whistleblower to be an employee or former employee.

AT&T wanted this case dismissed because the consultant was not an “insider.” They say that because the consultant was never employed by AT&T, he can’t have inside information.

The government has not yet joined the lawsuit, but it does agree that outside consultants can in fact be whistleblowers and may have insider information. They agree that these types of whistleblowers may receive awards for their information.

Cell Phone Surcharges in Georgia

Two different counties in Georgia have filed lawsuits against different telecom companies claiming that they have intentionally lied about cell phone surcharges regarding 911 fees.

The counties claim that because the phone companies were trying to provide competitive service at a cheaper price than their competitors, they under billed customers for 911 cell phone surcharges and then fraudulently represented how much they kept for themselves to the counties.

Have You Been Affected by Deceptive Cell Phone Surcharges?

Are you a phone company employee or have access to insider knowledge regarding deceptive cell phone surcharges?  If so, you may be eligible to file a whistleblower lawsuit under the False Claims Act (FCA). Current or former employees of phone companies often have the best insider knowledge.

There are benefits for those who choose to step up as whistleblowers. Whistleblowers collect between 15 percent and 30 percent of the amount collected by the government.

If you are a telecom employee with information about potentially deceitful practices related to your company’s fees and cell phone surcharges, you may qualify to file a whistleblower lawsuit. Or if you are a commercial customer with T1 lines that has been charged for 911 fees, fill out the form on this page for a FREE, confidential case evaluation.