SCOTUS to review Wisconsin Bell's FCC fraud claim

The nation's highest court has agreed to take a closer look at a corporate malfeasance lawsuit stemming from a whistleblower's claim Wisconsin Bell, Inc. for years overcharged schools and libraries under a $4.5 billion federal telecommunications program.

The U.S. Supreme Court ruled Monday it would review the Milwaukee-based AT&T subsidiary's challenge to the revival of a False Claims Act lawsuit during its upcoming conference.

The case was one of four that justices added to their docket for the 2024-25 term.

What's at issue? How did we get here?

The Federal Communications Commission set up the Schools and Libraries Universal Service Support program, also known as the E-rate program, shortly after the establishment of the Telecommunications Act of 1996, which calls for universal access to telecommunications services.

The E-rate program uses government funds to subsidize internet and telecommunications services for schools and libraries, particularly those in impoverished areas.

Schools and libraries would submit reimbursement requests to the private group after the telecommunications carriers provided the services. Roughly $4.5 billion was distributed each year through the E-rate program.

In 2008, telecom auditor Todd Heath, a Dodge County resident, filed a federal fraud lawsuit against Wisconsin Bell, alleging the company charged schools and libraries impermissibly high prices, effectively rendering each reimbursement request a false claim.

The program is paid for by the the federal government's Universal Service Fund and is designed to help schools and libraries afford telecommunications and internet services.

This article originally appeared on Milwaukee Journal Sentinel: Supreme Court will review Wisconsin Bell's FCC fraud claim