A Massachusetts businessman who was being sued by AT&T (NYSE:T) for $1.5 million is out of hot water.
The company had charged Michael Smith of making around $900,000 in fraudulent phone calls to Somalia. Smith, who did not even have a contract with AT&T, said that a hacker made the calls by infiltrating his company’s phone system.
In a statement Monday, AT&T told The Associated Press that it has dropped the lawsuit against Smith, “though we are entitled by law to collect the amounts owed.”
Smith had an easier time working with his actual phone service provider, Verizon Communications (NYSE:VZ), regarding a similar, but separate hacking incident. Without putting up a fight, Verizon had erased about $260,000 of erroneous charges accredited to Smith’s business, Business Insider reports.