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AT&T and MCI settle call-routing claims

Telecommunications giants MCI and AT&T have settled several claims they have against each other, including an AT&T lawsuit which alleged MCI had fraudulently redirected millions of dollars worth of call-routing fees to AT&T last year.

MCI filed an agreement to end the companies' claims against each other with the judge overseeing its bankruptcy proceedings.

The terms of the agreement were not disclosed, but AT&T agreed to end its call-routing lawsuit against MCI, and MCI agreed to withdraw its responding contempt of court claims against AT&T.

The two companies also agreed to settle claims against each other for access and other charges unrelated to the AT&T lawsuit.

MCI, still officially known by its prebankruptcy name of WorldCom, had claimed AT&T owed it $220m in access fees. Each company had disputed the other's claims.

Officials from both companies called the settlement good for both companies in a press release issued by MCI.

MCI had denied the AT&T allegations.

MCI was scheduled to emerge from bankruptcy at the end of this month but asked for a 60-day extension to complete US Securities and Exchange Commission paperwork.

Grant Gross writes for IDG News Service

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