AT&T’s stock price plunged after a report that the company may be liable for the cleanup of lead cables buried across the United States.
A Wall Street Journal report said that AT&T and other telecom giants may have to pay billions of dollars to remove the lead cables, which could pose a health risk to people who come into contact with them. AT&T’s stock price fell 4.1 percent to $14.50 on Friday, July 14 and another 6.7 percent to $13.53 on Monday, 17th July. The stock is now trading at its lowest level in 29 years.
Other telecom stocks also fell on the news, including Verizon, Lumen, and Frontier.
The report comes at a time when AT&T is already facing challenges. The company has been losing subscribers to its wireless business, and its debt load is high. The lead cable report could add to AT&T’s financial woes. The company could be forced to pay billions of dollars to remove the cables, and it could also face lawsuits from people who have been harmed by the cables.
The report has also raised concerns about the safety of lead cables. Lead is a toxic metal that can cause a variety of health problems, including learning disabilities, anemia, and cancer. It added that there are more than 2,000 lead cables buried across the United States. It is not clear how many of these cables pose a health risk.
The sources for this piece include an article in Reuters.