AT&T Drops Legal Fight Over Man's $1M Bill

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IPSWICH, Mass. (AP) — AT&T Inc. has dropped its legal fight against a Massachusetts businessman whose company was on the hook for a fraudulent million-dollar phone bill.

The telecommunications company says in a statement Monday that it is no longer pursuing its claims against Michael Smith, of Ipswich, "though we are entitled by law to collect the amounts owed."

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Smith says someone hacked into his small manufacturing company's phone system in 2009 and made nearly $900,000 in calls to Somalia. AT&T sued Smith for $1.15 million to recover the cost of the calls plus interest.

Smith tells The Salem News he repeatedly asked AT&T to write off the bill. He said if forced to pay it, his company would close and his 14 employees would lose their jobs.

The Associated Press left a message for Smith on Monday.

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Information from: The Salem (Mass.) News, http://www.salemnews.com

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