AT&T Inc. agreed to pay $6.25 million in a lawsuit against the phone company for leaking financial information to Wall Street analysts, the SEC said in a court filing.
Three executives of the company, Christopher Womack, Kent Evans and Michael Black, who the SEC alleged were involved in violations of Regulation FD, or fair disclosure, agreed to pay a $25,000 penalty, without admitting or denying the regulators' allegations, the filing said.
We are committed to following all applicable laws and happy to have resolution with the SEC. AT&T told Reuters in an emailed statement that the company and its employees haven't denied or admitted to the SEC's allegations.
In 2000, the SEC said it violated fair disclosure, which barred companies from disclosing material non-public information privately, helping to level the playing field for investors.
AT&T's goal was to have the analysts manage their revenue forecasts, so that actual results would meet the reduced forecasts and not disappoint investors who might otherwise drive its share price down, according to the SEC.