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Michael Smith Battling AT&T Over $1 Million Phone Bill

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AT&T is suing a small business owner for $1.15 million over what he claims is a fraudulent phone bill. | AP

IPSWICH, Mass. — A Massachusetts businessman is engaged in a legal battle with AT&T Inc. over what he calls a fraudulent million-dollar phone bill.

Michael Smith, of Ipswich, says in 2009 someone hacked into his small manufacturing company's phone system and made nearly $900,000 in calls to Somalia. AT&T sued Smith for $1.15 million to recover the cost of the calls plus interest.

Smith has countersued, alleging abuse of the legal process and violation of state consumer-protection laws.

An AT&T spokeswoman says the company does not comment on pending litigation.

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Filed by Alicia Ciccone