AT&T to Pay $6 Million to SEC Over Private Calls to Analysts

Under the terms of the settlement, AT&T will pay a penalty of $6.25 million.

A settlement proposal was filed by government lawyers with a federal judge in Manhattan. The three AT&T executives who were named in the suit each agreed to pay a $25,000 penalty without admitting wrongdoing.

According to the SEC, the executives made private calls to analysts at about 20 firms and disclosed information that included its internal sales data and impact on revenue. The analysts lowered their revenue forecasts. The calls were made to make sure the company didn't miss out on revenue.

Jim Greer, a company spokesman, said in an email that they were pleased to have resolution with the SEC.

AT&T is being sued by the SEC over information that was not made public to analysts.

The agency said the calls were in violation of Regulation FD, which requires disclosure of material information to the investing public.

Dennis Kelleher, president and chief executive officer of Better Markets, a nonprofit watchdog group, applauded the SEC for fining the company and three executives. Money penalties are not enough to stop the widespread corporate practice of market manipulation because they are too light.