Verizon and AT&T have been sued by investors over lead-covered cables and their environmental statements, according to reports.
Reuters reported that Verizon was sued by investors who allege the telecommunications company violated US securities laws by not disclosing the environmental and health risks associated with its cabling covered in lead.
A lawsuit was filed in a western Pennsylvania federal court. It covers potentially thousands of investors holding Verizon shares before an earlier report by the Wall Street Journal that the company owns toxic lead-covered cables across the US.
AT&T was sued separately by investors in a New Jersey federal court. AT&T has reportedly dismissed the claim as “baseless”. Verizon said it has been in contact with the US Environmental Protection Agency. The agency is investigating the risks from lead-covered telecom cables and has sought information from the companies.
The International Lead Association declined to comment on the case. Analysts say the use of lead is firmly in the crosshairs of regulators.
