(Reuters) – AT&T Inc. has agreed to pay a $6.25 million penalty to settle a Securities and Exchange Commission lawsuit accusing the phone company of selectively leaking financial information to Wall Street analysts, the SEC said in a court filing.
Three executives of the corporate: Christopher Womack, Kent Evans and Michael Black, who the SEC alleged were involved in violating Regulation FD, or fair disclosure, also agreed to every pay a $25,000 penalty without admitting or denying the regulator’s allegations, the filing said.
AT&T didn’t immediately reply to a Reuters’ request for comment outside business hours.
In a March 2021 lawsuit, the SEC accused Dallas-based AT&T and three investor relations executives of leaking details about its smartphone business to twenty firms.
The SEC said it violated fair disclosure which it adopted in 2000 to bar corporations from disclosing material non-public information privately, helping level the playing field for investors.
AT&T’s goal, alleged the SEC, was to “manage” those analysts and have them lower their revenue forecasts, in order that actual results would meet the reduced forecasts and never disappoint investors who might otherwise drive its share price down.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Toby Chopra)
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