The nation’s largest wireless carriers, Verizon and AT&T, recently agreed to pay a combined $116 million to settle a whistleblower lawsuit claiming they overcharged California government customers for wireless services.
The settlement was approved on Thursday by a California court and is the second-largest California False Claims Act settlement in history outside the healthcare industry. Verizon will pay $68 million and AT&T will pay $48 million to settle claims that the carriers knowingly ignored two cost-saving requirements included in multi-billion-dollar contracts offering wireless services to state and local government users in California and in other states.
The largest users among the nearly 300 state and local entities that will receive money through the settlement are the state of California, the California State University system, the University of California system, Los Angeles County, and Sacramento, San Diego, San Francisco, and Riverside city and county governments.
Other local or regional entities that will reportedly receive part of the settlement include Yuba County, Colusa County, Yuba Community College and Glenn County.