This case was last updated from PACER on 12/03/2021 at 07:05:59 (UTC).

Securities and Exchange Commission v. AT&T Inc. et al

Case Summary

On March 05, 2021, the Securities and Exchange Commission (“SEC”), represented by Alexander Mircea Vasilescu, Richard R. Best and Victor Edward Suthammanont, all attorneys at New York’s regional office, filed a civil enforcement action against AT&T, Inc. (“AT&T”), Christopher C. Womack (“Womack”), Kent D. Evans (“Evans”), and Michael J. Black (“Black”) (collectively, “Defendants”), seeking injunctive relief and civil penalties for repeatedly violating Regulation FD and for aiding and abetting AT&T's violations, by selectively disclosing material nonpublic information to research analysts. This case was filed in U.S. District Court in the  Southern District of New York with Judge Paul A. Engelmayer presiding.

 

In its complaint, the SEC alleged that “Defendant AT&T, aided and abetted by Defendants Womack, Evans, and Black, executives in its Investor Relations (“IR”) Department, repeatedly violated Regulation FD (Fair Disclosure)—a Commission rule aimed at promoting investor confidence in the integrity of the capital markets by prohibiting selective disclosures by issuers of material nonpublic information to securities analysts, among others—by disclosing AT&T’s projected and actual financial results during phone calls Womack, Evans, and Black held with equity stock analysts from approximately 20 Wall Street firms on a one-on-one basis.”

 

The SEC further alleged that “in early March 2016, AT&T and its executives, including Womack, Evans, and Black, learned that a steeper-than-expected decline in smartphone sales by AT&T would cause its revenue for the first quarter of 2016 (“1Q16”) to fall short of analysts’ estimates.”

The Commission also alleged that in order to avoid falling short of the consensus revenue estimate for the third consecutive quarter, AT&T Investor Relations executives Christopher Womack, Michael Black, and Kent Evans made private, one-on-one phone calls to analysts at approximately 20 separate firms where they allegedly disclosed AT&T's internal smartphone sales data and the impact of that data on internal revenue metrics, despite the fact that internal documents specifically informed Investor Relations personnel that AT&T's revenue and sales of smartphones were types of information generally considered "material" to AT&T investors, and therefore prohibited from selective disclosure under Regulation FD. As a result of what they were told on these calls, the analysts substantially reduced their revenue forecasts, leading to the overall consensus revenue estimate falling to just below the level that AT&T ultimately reported to the public on April 26, 2016.”

 

There are two claims for relief laid down by the SEC. The first claim is filed against AT&T for alleged violations of Section 13(a) of the Exchange Act and Regulation FD in violation of Section 13(a) of the Exchange Act [15 U.S.C. § 78m(a)] and Regulation FD [17 C.F.R. § 243.100, et seq.] thereunder and the second claim filed against Womack, Evans, and Black is for allegedly aiding and abetting AT&T’s Violations of Section 13(a) of the Exchange Act and Regulation FD. 

 

In its prayer for relief, the SEC has requested the court to order an injunctive relief in addition to directing the Defendants to pay civil money penalties pursuant to Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)];

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-01951

  • Filing Date:

    03/05/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Paul A. Engelmayer

 

Party Details

Plaintiff

Securities and Exchange Commission

Defendants

Christopher C. Womack

AT&T Inc.

Michael J Black

Kent D. Evans

Attorney/Law Firm Details

Plaintiff Attorneys

Alexander Mircea Vasilescu

Attorney at U.S. Securities and Exchange Commission( 3 World Financial)

Three World Financial Center

New York, NY 10281

Victor Edward Suthammanont

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Suite 400

New York, NY 10281

Jacob David Zetlin-Jones

Attorney at Securities and Exchange Commission

200 Vesey Street, Suite 400

New York, NY 10281

Richard R. Best

Attorney at U.S. Securities and Exchange Commission

200 Vesey Street, Ste 400

New York, NY 10281

Defendant Attorneys

Jeffrey M Tilloton

Attorney at Tillotson Law

1807 Ross Avenue, Suite 325

Dallas, TX 75201

Leslie C Thorne

Attorney at Haynes and Boone, LLP

600 Congress Ave., Suite 1300

Austin, TX 78701

Randall Wade Jackson

Attorney at Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Richard Samson Krumholz

Attorney at Norton Rose Fulbright US LLP (Dallas)

2200 Ross Avenue, Suite 3600

Dallas, TX 75201

Peter Andrew Stokes

Attorney at Norton Rose Fulbright US LLP

98 San Jacinto Boulevard, Suite 1100

Austin, TX 78701

Seth Michael Kruglak

Attorney at Norton Rose Fulbright US LLP

1301 Avenue Of The Americas

New York, NY 10019

Brittany Morgan Wagonheim

Attorney at Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019-6099

 

Court Documents

#57

(#57) AMENDED CIVIL CASE MANAGEMENT PLAN AND SCHEDULING ORDER:This Amended Civil Case Management Plan Order is submitted by the parties in accordance with Fed. R. Civ. P. 16(b)(4). The Civil Case Management Plan and Scheduling Order dated June 3, 2021 (Dkt 43), shall be modified as follows, but to the extent not modified herein, remains in full effect: Motions due by 5/3/2022. Responses due by 5/20/2022 Replies due by 5/31/2022. Deposition due by 2/15/2022. Fact Discovery due by 2/15/2022. Expert Discovery due by 4/15/2022. (Signed by Judge Paul A. Engelmayer on 12/1/2021) (jca) (Entered: 12/01/2021)

#56

(#56) ORDER granting #54 Letter Motion to Continue; terminating #55 Letter Motion to Continue. Granted. The parties' proposed schedule is adopted. The amended case management plan will issue separately. The Court hereby adjourns the case management conference previously scheduled for February 28, 2022 at 2 p.m. toMarch 17, 2022 at 2 p.m. SO ORDERED. Case Management Conference set for 3/17/2022 at 02:00 PM before Judge Paul A. Engelmayer. (Signed by Judge Paul A. Engelmayer on 12/1/2021) (jca) (Entered: 12/01/2021)

55 #1

Proposed Agreed Civil Case Management Plan and Scheduling Order Number 2

55 #55

Main Document

54 #1

Proposed Agreed Scheduling Order

54 #54

Main Document

#53

(#53) ORDER denying #52 Letter Motion for Extension of Time. The Court denies the request to modify the schedule. The Court at the initial conference denied a request to set a largely similar schedule as that now proposed, and made clear that the protracted schedule set for discovery in this case was intended to be firm. And the concerns identified in counsels' letter, such as the volume of written discovery and depositions, are ones that largely if not entirely, were articulated by counsel at the time. The Court is open to a joint proposal to revise the intermediate dates in the current case management plan provided that the summary judgment briefing schedule continued to conclude by May 31, 2022. To the extent that counsel express a concern about travel to conduct depositions, see Dkt. #52 at 2 n.1, the Court encourages counsel to arrange for remote depositions. SO ORDERED. (Signed by Judge Paul A. Engelmayer on 11/22/2021) (va) (Entered: 11/22/2021)

52 #1

[Proposed] Revised Civil Case Management Plan and Scheduling Order

52 #52

Main Document

50 #3

Text of Proposed Order Proposed Order

50 #1

Affidavit Affidavit In Support of Motion for Admission Pro Hac Vice

#8

#7

#5

#4

#3

#2

#1

57 More Documents Available
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Docket Entries

  • 12/01/2021
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  • Docket(#57) AMENDED CIVIL CASE MANAGEMENT PLAN AND SCHEDULING ORDER:This Amended Civil Case Management Plan Order is submitted by the parties in accordance with Fed. R. Civ. P. 16(b)(4). The Civil Case Management Plan and Scheduling Order dated June 3, 2021 (Dkt 43), shall be modified as follows, but to the extent not modified herein, remains in full effect: Motions due by 5/3/2022. Responses due by 5/20/2022 Replies due by 5/31/2022. Deposition due by 2/15/2022. Fact Discovery due by 2/15/2022. Expert Discovery due by 4/15/2022. (Signed by Judge Paul A. Engelmayer on 12/1/2021) (jca) (Entered: 12/01/2021)

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  • 12/01/2021
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  • Docket(#56) ORDER granting #54 Letter Motion to Continue; terminating #55 Letter Motion to Continue. Granted. The parties' proposed schedule is adopted. The amended case management plan will issue separately. The Court hereby adjourns the case management conference previously scheduled for February 28, 2022 at 2 p.m. toMarch 17, 2022 at 2 p.m. SO ORDERED. Case Management Conference set for 3/17/2022 at 02:00 PM before Judge Paul A. Engelmayer. (Signed by Judge Paul A. Engelmayer on 12/1/2021) (jca) (Entered: 12/01/2021)

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  • 12/01/2021
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  • Docket(#55) JOINT LETTER MOTION to Continue /Modify Deadlines in Civil Case Management Plan and Scheduling Order addressed to Judge Paul A. Engelmayer from Richard S. Krumholz dated December 1, 2021. Document filed by AT&T Inc., Michael J Black, Kent D. Evans, Christopher C. Womack. (Attachments: #1 Proposed Agreed Civil Case Management Plan and Scheduling Order Number 2).(Krumholz, Richard) (Entered: 12/01/2021)

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  • 12/01/2021
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  • Docket(#54) JOINT LETTER MOTION to Continue /Modify Deadlines in Civil Case Management Plan and Scheduling Order addressed to Judge Naomi Reice Buchwald from Richard S. Krumholz dated December 1, 2021. Document filed by AT&T Inc., Michael J Black, Kent D. Evans, Christopher C. Womack. (Attachments: #1 Proposed Agreed Scheduling Order).(Krumholz, Richard) (Entered: 12/01/2021)

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  • 11/22/2021
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  • Docket(#53) ORDER denying #52 Letter Motion for Extension of Time. The Court denies the request to modify the schedule. The Court at the initial conference denied a request to set a largely similar schedule as that now proposed, and made clear that the protracted schedule set for discovery in this case was intended to be firm. And the concerns identified in counsels' letter, such as the volume of written discovery and depositions, are ones that largely if not entirely, were articulated by counsel at the time. The Court is open to a joint proposal to revise the intermediate dates in the current case management plan provided that the summary judgment briefing schedule continued to conclude by May 31, 2022. To the extent that counsel express a concern about travel to conduct depositions, see Dkt. #52 at 2 n.1, the Court encourages counsel to arrange for remote depositions. SO ORDERED. (Signed by Judge Paul A. Engelmayer on 11/22/2021) (va) (Entered: 11/22/2021)

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  • 11/19/2021
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  • Docket(#52) JOINT LETTER MOTION for Extension of Time addressed to Judge Paul A. Engelmayer from Randall W. Jackson, Richard Krumholz, Jon Patton, and Victor Suthammano dated November 19, 2021. Document filed by AT&T Inc.. (Attachments: #1 [Proposed] Revised Civil Case Management Plan and Scheduling Order).(Jackson, Randall) (Entered: 11/19/2021)

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  • 11/12/2021
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  • Docket(#51) ORDER FOR ADMISSION PRO HAC VICE: granting #50 Motion for Jonathan R. Patton to Appear Pro Hac Vice. (Signed by Judge Paul A. Engelmayer on 11/12/2021) (ama) (Entered: 11/12/2021)

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  • 11/12/2021
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  • Docket>>>NOTICE REGARDING PRO HAC VICE MOTION. Regarding Document No. #50 MOTION for Jonathan R. Patton to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-25316322. Motion and supporting papers to be reviewed by Clerk's Office staff. The document has been reviewed and there are no deficiencies. (aea) (Entered: 11/12/2021)

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  • 11/10/2021
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  • Docket(#50) MOTION for Jonathan R. Patton to Appear Pro Hac Vice . Filing fee $ 200.00, receipt number ANYSDC-25316322. Motion and supporting papers to be reviewed by Clerk's Office staff. Document filed by Michael J Black, Kent D. Evans, Christopher C. Womack. (Attachments: #1 Affidavit Affidavit In Support of Motion for Admission Pro Hac Vice, #2 Exhibit Supreme Court of Texas Certificate of Good Standing, #3 Text of Proposed Order Proposed Order).(Thorne, Leslie) (Entered: 11/10/2021)

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  • 10/05/2021
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  • Docket(#49) REQUEST FOR INTERNATIONAL JUDICIAL ASSISTANCE (LETTER ROGATORY) granting #48 Letter Motion for Discovery. The United States District Court for the Southern District of New York presents its compliments to the Ontario Superior Court of Justice in Toronto in the Province of Ontario, Canada, and requests judicial assistance to compel the attendance of witnesses at oral depositions and the production of documents to be used in a civil proceeding before this Court in the above-captioned matter. This Court has the authority to grant this Letter Rogatory under 28 U.S.C. 178l(b)(2). (As further set forth herein.) (Signed by Judge Paul A. Engelmayer on 10/5/2021) (va) (Entered: 10/05/2021)

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47 More Docket Entries
  • 03/08/2021
  • DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Paul A. Engelmayer. Please download and review the Individual Practices of the assigned District Judge, located at #https://nysd.uscourts.gov/judges/district-judges. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #https://nysd.uscourts.gov/rules/ecf-related-instructions..(sj) (Entered: 03/08/2021)

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  • 03/08/2021
  • Docket***NOTICE TO ATTORNEY REGARDING CIVIL. CASE OPENING STATISTICAL ERROR CORRECTION: Notice to attorney Richard R. Best. The following case opening statistical information was erroneously selected/entered: County code Albany. The following correction(s) have been made to your case entry: the County code has been modified to New York. (sj) (Entered: 03/08/2021)

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  • 03/05/2021
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  • Docket(#8) NOTICE OF APPEARANCE by Victor Edward Suthammanont on behalf of Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#7) NOTICE OF APPEARANCE by Alexander Mircea Vasilescu on behalf of Securities and Exchange Commission..(Vasilescu, Alexander) (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#6) FILING ERROR - DEFICIENT SUMMONS REQUEST - PDF ERROR REQUEST FOR ISSUANCE OF SUMMONS as to Michael J. Black, re: #1 Complaint. Document filed by Securities and Exchange Commission..(Best, Richard) Modified on 3/8/2021 (sj). (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#5) FILING ERROR - DEFICIENT SUMMONS REQUEST - PDF ERROR REQUEST FOR ISSUANCE OF SUMMONS as to Kent D. Evans, re: #1 Complaint. Document filed by Securities and Exchange Commission..(Best, Richard) Modified on 3/8/2021 (sj). (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#4) FILING ERROR - DEFICIENT SUMMONS REQUEST - PDF ERROR REQUEST FOR ISSUANCE OF SUMMONS as to Christopher C. Womack, re: #1 Complaint. Document filed by Securities and Exchange Commission..(Best, Richard) Modified on 3/8/2021 (sj). (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to AT&T Inc., re: #1 Complaint. Document filed by Securities and Exchange Commission..(Best, Richard) (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#2) CIVIL COVER SHEET filed..(Best, Richard) (Entered: 03/05/2021)

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  • 03/05/2021
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  • Docket(#1) COMPLAINT against AT&T Inc., Michael J Black, Kent D. Evans, Christopher C. Womack. Document filed by Securities and Exchange Commission..(Best, Richard) (Entered: 03/05/2021)

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