Settlements and Verdicts

Missouri Cities, AT&T Reach Preliminary $65 Million Settlement

Some 330 cities in Missouri will split $65 million to be paid by AT&T as settlement of a class action suit alleging that the communications gint underpaid telephone business taxes.

If approved, $17 million will go to 10 cities in the Kansas city area as settlement of a class action going back to 2004, over taxes on landlines.

The settlement is expected to have a significant impact on municpal budgets. Some of the cities included in the settlement are: $10.7 million to Kansas City; $2.5 million to Independence; $1.4 million to Lee’s Summit; $570,000 to Blue Springs; $483,000 to Raytown; $481,000 to Gladstone; $327,000 to Grandview; $197,000 to North Kansas City; $172,000 to Excelsior Springs; and $60,000 to Riverside.

JUN-29-09: AT&T will pay $65M to Missouri cities to settle tax class action[BIZJOURNAL: AT&T TO PAY $65 MILLION TO MISSOURI CITIES]

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