Many unsuspecting consumers paid the charges, but when they found out they had been scammed by the phone giant they ran into even more problems.
During two days of grueling testimony in Tallahassee a current AT&T sales rep testified she was not allowed to grant refunds unless callers signed up for some AT&T services.
After her testimony company representatives and lawyers started talking settlement.
AT&T now says it will refund all of the improper charges by June 15.
State Solicitor General Chris Kise told NewsChannel seven, "Customers will not be subjected to a sales pitch and swing when they call about their refunds or billing complaints. That's what AT&T has been doing because that's how they conduct their business."
But the high profile case is not over yet. Attorney General Charlie Crist says he will now try to prove the company engaged in unfair and deceptive practices by sending out the bogus bills in the first place.