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

07/09/2012 11:17 am ET | Updated Jul 09, 2012

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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