AT&T Sues Former Reseller for Breach of Contract

According to a Northern District of Oklahoma complaint filed on Tuesday by AT&T Corp. against ECG Communications Group LLC, the Bartlesville-based defendant owes AT&T  more than $6 million for unpaid products and services. The filing explained that the dispute stemmed from ECG’s participation in AT&T’s Partner Exchange Program through which it sold certain AT&T products and services to end users.

The filing stated AT&T is a global media, tech, and telecommunications company that launched the program in 2013. ECG, an independent provider of telecommunication services for personal and residential use and small businesses, reportedly joined the program in 2015. Under the terms of the parties’ master services agreement, AT&T would provide ECG with training, sales information, competitive pricing, and other tools to help it succeed as a reseller.

In addition, AT&T invoiced ECG for all products and services ordered through the program and ECG was required to pay within 30 days, the complaint said. In return, ECG would reportedly handle all billing and collection efforts with its end users.

Problems reportedly arose in December 2020 when ECG began paying only a portion of its invoices, it later stopped paying them altogether in the spring of 2021. In late June, AT&T notified ECG that it was in breach of the agreement and that it owed an outstanding balance of $6 million. Failure to cure the breach, AT&T reportedly told ECG, would result in termination of the agreement. 

Despite negotiations, ECG’s continued failure to pay allegedly prompted AT&T to end the relationship and to file the instant complaint for breach of contract. The filing seeks actual damages and reimbursement of the plaintiff’s attorneys’ fees and litigation costs.

AT&T is represented by Crowe & Dunlevy.