The Strange Law Firm, PC

Provides Big Defense for SBC Communications

 OCTOBER 8, 2004 

SAN FRANCISCO - In Re New Regulatory Framework for Pacific Bell (SBC)  

For the past two years, The Strange Law Firm, PC has been lead outside counsel for SBC in defending a regulatory accounting audit performed by the California Public Utilities Commission ("CPUC").  Paul Strange led the firm’s legal team that successfully protected SBC against over $1 billion in potential liability.  The Strange Law Firm worked closely with SBC’s in-house counsel and regulatory accounting experts and with a team of experts from Deloitte & Touche.  The substantial record created through the combined efforts of these groups provided the basis for the CPUC’s conclusion that although there were some accounting errors, they did not cumulatively raise SBC’s earnings to a level that would require customer refunds under the CPUC's past regulatory earnings sharing mechanism.  On October 1, 2004, the CPUC adopted its final decision in the second of two phases of the proceeding related to the audit of SBC California.   

The audit involved allegations of some $2 billion in adjustments and was performed over a period of 22 months.  The litigation of the disputed audit adjustments took over two and a half years from the initiation of the proceeding to the issuance of the final decision.  The hearings were co-tried with Michael T. Thorsnes of Thorsnes, Bartolotta & McGuire in June and August of 2002.  The Strange Law Firm remains lead outside counsel for SBC in several matters including an upcoming phase to determine prospective CPUC policy regarding SBC’s regulatory framework in California. 

The firm’s legal team also included Erinn R.W. Putzi, Esq., James B. Drimmer, Esq. and paralegals Erik Thorsnes and Benjamin Lang.