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Business litigation: manufacturer vs. AT&T

In recent business news, Florida residents will be interested to learn that a manufacturer has decided to continue with its countersuit against AT&T, even though the telephone company dropped its original suit against Todd Tool & Abrasive Systems, Inc. This business litigation case reportedly started when AT&T sued the manufacturer for $1.15 million, stemming from phone calls allegedly made to Somalia after a hacking of the company's phone lines. Todd Tool countersued AT&T, alleging unfair trade practices against the telecommunications behemoth.

Recently, AT&T requested that its original complaint be dropped. According to its filing, AT&T decided not to go ahead with the civil action even though it initiated the lawsuit in good faith. Sources say that AT&T had previously contacted Todd Tool's resident with an offer to drop its complaint if the manufacturer dropped its countersuit.

Much to AT&T's dismay, Todd Tool's president stated that was a step he was unwilling to take. According to him, his company has spent a large sum of money and other resources defending itself against AT&T's lawsuit. He says that he has invested three years of his time-not to mention hefty legal bills-and lost business opportunities due to this business litigation. He wishes to continue the countersuit against the telecom giant at least in some part to show other small and medium-sized business just how vulnerable they could be to such a lawsuit as alleged in this case.

Defending a smaller company against a larger company like the one involved in this lawsuit can be extremely costly. However, sometimes taking a stand against another entity during business litigation is the right step for a business owner. This might be the case in situations like the one alleged here that resulted in significant financial and business loss to the manufacturing company.

Source: Boston.com, "Ipswich business to continue suit against AT&T after it drops $1.15 million complaint," Hiawatha Bray, July 10, 2012

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