{"id":1019602,"date":"2026-08-23T19:46:21","date_gmt":"2026-08-23T19:46:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/1019602\/"},"modified":"2026-08-23T19:46:21","modified_gmt":"2026-08-23T19:46:21","slug":"att-wins-8-million-verdict-against-fiberwave","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/1019602\/","title":{"rendered":"AT&#038;T wins $8 million verdict against Fiberwave"},"content":{"rendered":"<p><img alt=\"A Dallas jury has awarded $8 million to AT&amp;T in a breach of contract case with former sales providers.\" loading=\"eager\" fetchpriority=\"high\"   style=\"aspect-ratio:3 \/ 2\" class=\"x100 y100 opc bgpc ofcv bgscv block bg-gray200 mnh0px fill\"\/><\/p>\n<p>A Dallas jury has awarded $8 million to AT&amp;T in a breach of contract case with former sales providers.<\/p>\n<p>Elias Valverde II\/Dallas Morning News<\/p>\n<p>A <a href=\"https:\/\/www.txcourts.gov\/businesscourt\/\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">Texas Business Court<\/a> jury in Dallas deliberated for just 90 minutes late Friday before ordering\u00a0Fiberwave and one of its subcontractors to pay <a href=\"https:\/\/www.att.com\/\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">AT&amp;T<\/a> $8 million for breaching its contractual duty to indemnify the telecom giant. The litigation started when Fiberwave, a former sales partner, sued AT&amp;T for $50 million in unpaid commissions.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cdn-channels-pixel.ex.co\/events\/0012000001fxZm9AAE?integrationType=DEFAULT&amp;template=design%2Farticle%2Fplatypus_two_column.tpl\" alt=\"\" class=\"x1px y1px vh abs\" aria-hidden=\"true\" width=\"1\" height=\"1\"\/><\/p>\n<p>After a\u00a0weeklong jury trial with dozens of sidebars and a clock with a hard stop, jurors heard testimony on the sales culture at AT&amp;T and a <a href=\"https:\/\/www.justice.gov\/\" data-link=\"native\" rel=\"noopener nofollow\" target=\"_blank\" class=\"\">Department of Justice<\/a> investigation. Counsel started closing arguments at 6 p.m., and the jurors started deliberating at 8 p.m. An hour and a half later, the jurors had reached a verdict.<\/p>\n<p class=\"MM_onlineOnly\" title=\"CCI Online Only\"><strong>Related:<\/strong> <a href=\"https:\/\/www.dallasnews.com\/business\/banking\/article\/inside-texas-new-business-court-22394799.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">Inside the Texas Business Court, where Judge Whitehill aims to build &#8216;competitive product&#8217;<\/a><\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>The jury found Fiberwave\u2019s conduct resulted in $4 million in damages and Spearhead Networks\u2019 $4 million. A total of $8 million was awarded to AT&amp;T.\u00a0<\/p>\n<p>\u201cThis company engaged in illegal conduct, and we terminated our relationship with them, and anyone involved in the scheme, after we learned what they were doing. We\u2019re pleased the jury agreed with us and we appreciate their thoughtful attention,\u201d AT&amp;T said in a statement to The Texas Lawbook.<\/p>\n<p>Judge Andrea\u00a0Bouressa presided over the case. Since the Texas Business Court does not have its own space, the weeklong jury trial took place in Dallas County District Court Judge Eric Moy\u00e9\u2019s courtroom in the George Allen Courts Building.<\/p>\n<p>The dispute stemmed from AT&amp;T\u2019s practice of contracting with third-party representatives and entities to market and sell its services for commissions. Faisal Chaudhry was an AT&amp;T employee for four years until he left in 2008 to operate Spearhead Networks, which entered a service-provider agreement with the telecom giant in 2010.<\/p>\n<p><strong>Related:<\/strong> <a href=\"https:\/\/www.dallasnews.com\/business\/article\/dexit-delaware-texas-nevada-corporate-governance-22372009.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">The Dexit dilemma: How a Texas business phenomenon could reshape the country<\/a><\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Chris Percy, who worked at AT&amp;T for 26 years and served as a vice president in 2018, coordinating and supervising high-value business sales with providers like Spearhead Consulting. Percy left to join Spearhead Consulting in 2019.<\/p>\n<p>In 2022, AT&amp;T received grand jury subpoenas from the U.S. attorney\u2019s office for the Northern District of California requesting information about Spearhead Networks and several former AT&amp;T employees.<\/p>\n<p>Spearhead Consulting renamed itself to\u00a0Fiberwave in 2023 and became one of AT&amp;T\u2019s largest third-party providers. Spearhead Networks was a Fiberwave subcontractor.<\/p>\n<p>The following year, AT&amp;T ended its contract with Fiberwave, claiming it was due to a Department of Justice investigation into the company and an alleged kickback scheme. In its termination letter, AT&amp;T stated it would withhold payments pending further investigation into alleged misconduct by Spearhead Networks.<\/p>\n<p>Fiberwave filed its suit against AT&amp;T in February 2025, claiming that the mobile company owes it $50 million in compensation for marketing and reselling AT&amp;T\u2019s services to businesses.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p><strong>Related:<\/strong> <a href=\"https:\/\/www.dallasnews.com\/business\/local-companies\/article\/texas-business-court-judges-reappointed-22365607.php\" data-link=\"native\" class=\"\" rel=\"nofollow noopener\" target=\"_blank\">Gov. Abbott reappoints all 10 Texas Business Court judges to two-year terms<\/a><\/p>\n<p>AT&amp;T then counterclaimed that Fiberwave violated its contract when it filed suit, alleging it contained confidential information. Fiberwave later removed the confidential information at AT&amp;T\u2019s request, but the company called it \u201canother example of its brazen disregard for contractual obligations.\u201d AT&amp;T named both Fiberwave and Spearhead Networks as defendants.<\/p>\n<p>The judge narrowed the claims presented at trial in a memorandum opinion last month.<\/p>\n<p>The jurors heard testimony from\u00a0Chaudhry earlier in the week that he made payments to AT&amp;T employees, but that was the culture. He said once Percy joined Spearhead Consulting, he provided leverage against AT&amp;T employees\u2019 demands.<\/p>\n<p>\u201cThey weren\u2019t doing something that was out of the norm. It was a pay-to-play culture, is what AT&amp;T had,\u201d Chaudhry said.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Fiberwave\u2019s counsel, James Shields of Shields Legal Group, told the jury in closing arguments that the case was about the money. \u201cAT&amp;T is playing the victim,\u201d Shields said.<\/p>\n<p>He argued that AT&amp;T failed to prove any breach of the agreement and that AT&amp;T had its service providers engage in pay-to-play for leads on sales.<br \/>Shields asked the jury to award a total of $50 million in damages for what Fiberwave claimed it was owed and attorney fees.<\/p>\n<p>AT&amp;T\u2019s counsel, Pete Marketos of Dallas-based Reese Marketos, started his opening argument with \u201cABCs\u201d \u2014 agreements, bribes and a cover-up \u2014 and ended his closing with \u201cDEs\u201d \u2014 denial and excuses.<\/p>\n<p>\u201cPeople tend to think of AT&amp;T as a phone bill and not the people who work there,\u201d Marketos said, motioning to his client, AT&amp;T corporate representative Shelley Goodman.<\/p>\n<p>Marketos told the jury that AT&amp;T terminated its contract with Fiberwave for cause due to the DOJ investigation. As a result, Fiberwave and Spearhead Networks are obligated to indemnify AT&amp;T for resulting legal fees. AT&amp;T had hired Sidley Austin to do an internal investigation, which cost $8.4 million.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Spearhead Networks called\u00a0Dykema\u2019s Chris Kratovil to the stand to testify that Sidley Austin overcharged for its two-year internal investigation.<\/p>\n<p>\u201cWe did not ask to be here, right? It wasn\u2019t anything AT&amp;T supposedly did that triggered all of this. It was Mr. Chaudhry and his company. He was paying people commercial bribes. Where\u2019s the accountability that we talked about?\u201d Marketos said.<\/p>\n<p>On rebuttal, Shields told the jury that the conduct the\u00a0DOJ investigated happened after the agreement was signed. \u201cThere wasn\u2019t one word that anything that happened in that investigation during the term of the agreement,\u201d Shields said.<\/p>\n<p>Marketos, in his rebuttal, pointed the jurors to evidence, including the agreement and bank statements.<\/p>\n<p class=\"uiTextSmall f aic jcc\">Article continues below this ad<\/p>\n<p>Shields declined to comment on the verdict.<\/p>\n<p>The Texas\u00a0Lawbook is an online news publication focused on business law in Texas. For more legal news, visit texaslawbook.net.<\/p>\n","protected":false},"excerpt":{"rendered":"A Dallas jury has awarded $8 million to AT&amp;T in a breach of contract case with former sales&hellip;\n","protected":false},"author":3,"featured_media":1019603,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5135],"tags":[5229,1596,358,325183,290169,3187,67,586,132,5230,68,2969],"class_list":["post-1019602","post","type-post","status-publish","format-standard","has-post-thumbnail","category-dallas","tag-america","tag-dallas","tag-texas","tag-tp-courts","tag-tp-dallas","tag-tx","tag-united-states","tag-united-states-of-america","tag-unitedstates","tag-unitedstatesofamerica","tag-us","tag-usa"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/117146551030073032","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1019602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=1019602"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/1019602\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/1019603"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=1019602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=1019602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=1019602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}