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AT&T drops lawsuit over $1M phone bill in hacking claim

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press
Wednesday, July 11, 2012 - 11:30 am

IPSWICH, Mass. – AT&T has dropped its lawsuit against a Massachusetts businessman over a $1 million phone bill he says resulted from a hacker’s fraud.

Ipswich resident Michael Smith is owner of the small manufacturing company Todd Tool & Abrasive Systems. He said Tuesday he’s not dropping a counterclaim for the costs to defend himself in the legal battle his lawyers call unfair.

Smith says someone hacked into his company’s phone system in 2009 and made nearly $900,000 in calls to Somalia.