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This case was last updated from PACER on 07/24/2021 at 06:48:47 (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

  • Court:

    U.S. District Courts

  • Courthouse:

    New York Southern District

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

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

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

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

Richard Samson Krumholz

Attorney at Norton Rose Fulbright US LLP (Dallas)

2200 Ross Avenue, Suite 3600

Dallas, TX 75201

Randall Wade Jackson

Attorney at Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Brittany Morgan Wagonheim

Attorney at Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019-6099

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

 

Court Documents

#1

(#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)

#45

(#45) NOTICE OF FILING OF OFFICIAL TRANSCRIPT Notice is hereby given that an official transcript of a CONFERENCE proceeding held on 5/28/21 has been filed by the court reporter/transcriber in the above-captioned matter. The parties have seven (7) calendar days to file with the court a Notice of Intent to Request Redaction of this transcript. If no such Notice is filed, the transcript may be made remotely electronically available to the public without redaction after 90 calendar days....(McGuirk, Kelly) (Entered: 06/15/2021)

#42

(#42) PROPOSED CASE MANAGEMENT PLAN. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 06/02/2021)

#41

(#41) PROPOSED CASE MANAGEMENT PLAN. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 05/24/2021)

#36

No Description Available

#33

No Description Available

#28

No Description Available

#23

No Description Available

#19

No Description Available

#18

No Description Available

#14

No Description Available

#11

No Description Available

#10

No Description Available

#9

No Description Available

#4

(#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)

#3

(#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)

35 More Documents Available
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Docket Entries

  • 06/24/2021
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  • Docket(#47) STIPULATION AND ORDER GOVERNING THE PRODUCTION AND EXCHANGE OF CONFIDENTIAL INFORMATION: IT IS HEREBY STIPULATED AND AGREED, by the Parties hereto, through theirundersigned counsel, subject to the approval of the Court, pursuant to Federal Rule of CivilProcedure 26(c), that this Stipulation and Order Governing the Production and Exchange ofConfidential Information (the "Stipulation and Order") will govern the handling of documents, deposition testimony, deposition exhibits, deposition transcripts, written discovery requests, interrogatory responses, responses to requests to admit, responses to requests for documents, and any other information or material produced, given, or exchanged, including any information contained therein or derived therefrom ("Discovery Material") by or among any Party or non-Party providing Discovery Material (each a "Producing Party") in this Litigation. (As further set forth herein.) SO ORDERED. (Signed by Judge Paul A. Engelmayer on 6/24/2021) (va) (Entered: 06/24/2021)

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  • 06/23/2021
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  • Docket(#46) PROPOSED PROTECTIVE ORDER. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 06/23/2021)

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  • 06/15/2021
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  • Docket(#45) NOTICE OF FILING OF OFFICIAL TRANSCRIPT Notice is hereby given that an official transcript of a CONFERENCE proceeding held on 5/28/21 has been filed by the court reporter/transcriber in the above-captioned matter. The parties have seven (7) calendar days to file with the court a Notice of Intent to Request Redaction of this transcript. If no such Notice is filed, the transcript may be made remotely electronically available to the public without redaction after 90 calendar days....(McGuirk, Kelly) (Entered: 06/15/2021)

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  • 06/15/2021
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  • Docket(#44) TRANSCRIPT of Proceedings re: CONFERENCE held on 5/28/2021 before Judge Paul A. Engelmayer. Court Reporter/Transcriber: Rebecca Forman, (212) 805-0300. Transcript may be viewed at the court public terminal or purchased through the Court Reporter/Transcriber before the deadline for Release of Transcript Restriction. After that date it may be obtained through PACER. Redaction Request due 7/6/2021. Redacted Transcript Deadline set for 7/16/2021. Release of Transcript Restriction set for 9/13/2021..(McGuirk, Kelly) (Entered: 06/15/2021)

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  • 06/03/2021
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  • Docket(#43) CIVIL CASE MANAGEMENT PLAN AND SCHEDULING ORDER: All parties do not consent to conducting all further proceedings before a Magistrate Judge, including motions and trial. 28 U.S.C. 636(c). This case is to be tried to a jury. Counsel for the parties have conferred and their present best estimate of the length of trial is 15 trial days. Motions due by 4/15/2022. Responses due by 5/16/2022 Replies due by 5/31/2022. Deposition due by 1/31/2022. Fact Discovery due by 1/31/2022. Expert Discovery due by 4/8/2022. Case Management Conference set for 2/28/2022 at 02:00 PM before Judge Paul A. Engelmayer. (Signed by Judge Paul A. Engelmayer on 6/3/2021) (nb) (Entered: 06/03/2021)

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  • 06/02/2021
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  • Docket(#42) PROPOSED CASE MANAGEMENT PLAN. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 06/02/2021)

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  • 05/28/2021
  • DocketMinute Entry for proceedings held before Judge Paul A. Engelmayer: TelephonicInitial Pretrial Conference held on 5/28/2021. Court reporter present. (ajs) (Entered: 05/28/2021)

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  • 05/24/2021
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  • Docket(#41) PROPOSED CASE MANAGEMENT PLAN. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 05/24/2021)

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  • 05/24/2021
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  • Docket(#40) JOINT LETTER addressed to Judge Paul A. Engelmayer from Victor Suthammanont, Richard S. Krumholz, and Jeffrey M. Tillotson dated May 24, 2021 re: Initial Pretrial Conference. Document filed by Securities and Exchange Commission..(Suthammanont, Victor) (Entered: 05/24/2021)

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  • 05/21/2021
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  • Docket(#39) NOTICE OF APPEARANCE by Jacob David Zetlin-Jones on behalf of Securities and Exchange Commission..(Zetlin-Jones, Jacob) (Entered: 05/21/2021)

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36 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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