By Josh Beckerman
The Securities and Exchange Commission charged AT&T Inc. with violating Regulation FD, alleging that three investor relations executives selectively disclosed material nonpublic information to research analysts in 2016.
AT&T is disputing the allegations.
The SEC alleges that after "AT&T learned in March 2016 that a steeper-than-expected decline in its first-quarter smartphone sales would cause AT&T's revenue to fall short of analysts' estimates for the quarter," the three executives made calls to analysts to help the company "avoid falling short of the consensus revenue estimate."
AT&T said, "the information discussed during these March and April 2016 conversations concerned the widely reported, industry-wide phase-out of subsidy programs.
"Not only did AT&T publicly disclose this trend on multiple occasions before the analyst calls in question, but AT&T also made clear that the declining phone sales had no material impact on its earnings."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
03-05-21 1721ET