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GTE Probed for Alleged Shredding

May 16, 1997|From Bloomberg News

GTE Corp. is being investigated in connection with allegations that it shredded documents related to a 1992 overbilling inquiry, the California Public Utilities Commission said.

The telecommunications company said Wednesday that it has hired former state Supreme Court Chief Justice Malcolm Lucas to conduct its own investigation. The allegations stem from a 1992 state inquiry in which GTE was ordered to refund $3.2 million for overcharging Spanish-speaking customers. It also fired 24 employees, some of whom then sued the company.

In one of those suits, filed in state court in Simi Valley, a former employee accused GTE of shredding company documents. Shares of Stamford, Conn.-based GTE lost 25 cents to close at $42.75 on the NYSE.

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