AT&T Landline Class Action Case

FROM:            Gary Markenson

SUBJECT:     AT&T Landline Settlement

DATE:            June 26, 2009

News Flash!! Attorney Jim White informs us that the court has given preliminary approval of the settlement on the AT&T landlines lawsuit that dealt with the revenue base of the local gross receipts tax on telephone companies. Under the settlement, AT&T will pay approximately $50 million in back taxes and, in the future, pay approximately 35 percent more in local gross receipts taxes. Each affected city will have to adopt an ordinance accepting the settlement and file a form agreeing to the claim amount. The approximate amount that each city will receive is already posted on the MML Web site. We will have much more information on our Web site next week, but we wanted you to have the good news as soon as possible.

P.S. Checks for back taxes could be sent by the end of the year.

Landline Settlement Documents

• Estimated Amount Each City Will Receive Under The AT&T Landline Settlement Agreement (click here)
• Preliminary Approval Order
• Exhibit F (list of cities with ordinance exclusions)
• Exhibit G (back tax distribution formula)
• Joint Motion
• Model Ordinance
• Settlement Agreement
• FAQs - Frequently Asked Questions