Suit Claims AT&T; Is Pocketing Part of Fees

AT&T; Corp., the biggest U.S. long-distance telephone company, pockets almost half the money it collects for a federally mandated residential long-distance service charge, a lawsuit alleges.

The suit claims AT&T; bills residential customers 11.5% of their long-distance charges for the Universal Connectivity Charge, even though the Federal Communications Commission requires telecommunications carriers to contribute only 6.8% of long-distance revenue to the fund. AT&T; said the claims are without merit.

The complaint, which seeks class-action status on behalf of AT&T;’s 60 million residential customers, asks a judge to bar the company from charging a connectivity fee that exceeds what it contributes to the federal fund. It also seeks reimbursement of millions of dollars in overcharges