AT&T; must face lawsuit by MediaOne executives

AT&T; Inc., the largest U.S. telephone company, must face a lawsuit by former MediaOne Group Inc. executives who say a buyout reduced the value of their stock options, a judge ruled.

The executives, including ex-MediaOne Chief Executive Charles Lillis, can go to trial to press claims that they lost millions in the fallout from AT&T; Corp.’s 2000 takeover of the cable company, Delaware Chancery Court Judge Stephen Lamb ruled.

SBC Communications Inc. acquired AT&T; Corp. in 2005 for $16 billion and renamed itself AT&T; Inc.

The decision comes as AT&T; pushes for regulatory approval of its $83-billion purchase of BellSouth Corp. The move would increase AT&T;’s local service area and give the company full ownership of Cingular Wireless, the largest U.S. mobile phone carrier.

Federal Communications Commission Chairman Kevin J. Martin said a vote on the deal was unlikely before the end of the year.