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

On March 12, 2026, Wisconsin Bell, an AT&T subsidiary, agreed to pay $55 million to settle a whistleblower lawsuit. 

The case was filed under the False Claims Act (FCA) in 2008 by auditor Todd Heath who claimed that Wisconsin Bell overcharged schools participating in the E-Rate program.  This case, on remand from the U.S. Supreme Court (Court), was set to go to trial later this year.   

In February of 2025, the Court unanimously ruled that reimbursement requests in the E-Rate program are “claims” for purposes of the FCA because the government provided, at a minimum, a portion of the money applied for by transferring more than $100 million from the U.S. Treasury into the universal service fund.  The Court affirmed the 7th Circuit decision and remanded the case to the 7th Circuit for further proceedings. 

The Supreme Court’s decision means that both applicants and service providers that participate in the federal USF programs are subject to the False Claims Act, a law that allows for treble damages if parties fraudulently submit claims for payment to the federal government.