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Regulation FD Enforcement Action: SEC v. AT&T Inc.

Client memorandum | March 9, 2021

On March 5, 2021, the Securities and Exchange Commission (“SEC”) filed a complaint in the U.S. District Court for the Southern District of New York against AT&T Inc. (“AT&T”) alleging repeated violations of Regulation FD (Fair Disclosure), and against three of AT&T’s Investor Relations (“IR”) executives for aiding and abetting those violations. Regulation FD, adopted in August 2000, prohibits issuers, and certain others acting on their behalf, from selectively disclosing material, nonpublic information about their business or securities to analysts, investors, and others reasonably likely to trade on the information, or provide others with advice about trading securities. In its complaint, the SEC alleges that AT&T, through its IR executives, intentionally disclosed internal projected and actual financial results to select securities analysts without simultaneously disclosing the information to the public, in violation of Regulation FD. AT&T and the three IR executives are contesting these allegations.

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