AT&T Corp. and MCI today disclosed they have reached an agreement to settle claims the phone giants made against each other, including allegations that MCI routed calls through Canada in a fraudulent scheme to avoid paying local phone companies access fees.
The companies have submitted the agreement for approval to the U.S. Bankruptcy Court for the Southern District of New York.
As part of the agreement, MCI has dropped a contempt of court motion filed against AT&T.
AT&T and Onvoy Inc. also have reached an agreement to settle claims AT&T made against Onvoy for allegedly conspiring with MCI to avoid paying access charges. Onvoy is a least cost routing carrier serving other telcos.
Specific terms of the settlement agreements were not disclosed.
