The Justice Department asked a federal court judge on July 13 to throw out a suit filed by the American Civil Liberties Union (ACLU) and a group of prominent Chicagoans against AT&T for allegedly violating their privacy rights by divulging phone records to the National Security Agency (NSA).

The DOJ asserted the government's “state secrets” privilege, saying that if AT&T or the government were to confirm the collection of phone records as part of its domestic surveillance program, it would aid terrorists and pose a threat to national security.

Without the ability to confirm or deny the existence of the records collection program, AT&T would be unable to defend itself from allegations in the suit, so the suit should be dismissed, Deputy Assistant Atty. Gen. Carl Nichols argued.

But Harvey Grossman, legal director of the ACLU of Illinois, asked Judge Matthew Kennelly to let the case proceed.

“There is no 'secret' at risk in this case,” Grossman said. “Terrorists know that phone conversations and records are monitored. We hope the court will allow our clients to determine if AT&T is complying with the law.”

Kennelly said he would take the arguments under advisement and rule at a later date.

The ACLU filed the suit in Federal District Court in Chicago on behalf of Chicago author Studs Terkel and local leaders in the medical, legal, religious and political sectors. It was filed following publication of a USA Today story that alleged that AT&T had given customer phone records to the NSA. The suit contends that AT&T violated the Electronic Communications Privacy Act by allegedly divulging the information without first receiving a warrant. AT&T has neither confirmed nor denied its participation in the NSA program.

This is the third time in recent weeks that the DOJ has used the “state secrets” privilege in seeking dismissal of privacy cases challenging the government's domestic surveillance programs. The other motions in San Francisco and Detroit are also awaiting judges' decisions.