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CORRECT: AT&T Agrees To $150M Settlement
Saturday, May 6, 2006

AT&T Inc. said Friday that it agreed to a $150 million settlement of class-action lawsuits related to the offering of AT&T Wireless tracking stock in 2000.

(The headline, "AT&T Agrees To Pay $150M To Settle Class-Action Suits," published at 6:34 p.m. EDT, incorrectly stated that AT&T would pay the entire amount of the settlement.)

WASHINGTON (Dow Jones)--AT&T Inc. agreed to a $150 million settlement of class-action suits tied to the offering of AT&T Wireless tracking shares in April 2000.

Plaintiffs in the suits demanded more than $2.1 billion in damages related to the offer, according to AT&T's quarterly report filed with the Securities and Exchange Commission.

Last month, the parties in the suit agreed to settle for $150 million, pending court approval.

With the split-off of AT&T Wireless and AT&T Corp., Cingular Wireless, which acquired AT&T Wireless, will be allocated 70% of any liabilities arising out of the actions to the extent they relate to AT&T Wireless tracking stock, AT&T said.

The remaining liability will be allocated equally between AT&T Corp. and Comcast Corp.'s (CMCSA) Comcast Cable Communications Inc.

The settlement, if approved, wouldn't result in any additional expenses being accrued by Cingular or AT&T Corp.

Cingular is jointly owned by AT&T and BellSouth Inc (BLS).

-By Antonie Boessenkool, Dow Jones Newswires; 202-862-7139;