The EFF is suing AT&T over its eavesdropping on US citizens, on behalf of the NSA, through the use of Narus boxes.

The US government has now issued a "statement of interest" [PDF link] to the court in the case, asserting that it will use state secrets privilege to interfere with the case.

As in past revelations of the US government's secret overseas prison network, the US attempt to block investigation is itself couched in denial. From the statement:

The United States cannot disclose any national security information that may be at issue in this case. However, the fact that the United States will assert the state secrets privilege should not be construed as a confirmation or denial of any of Plaintiffs’ allegations, either about AT&T or the alleged surveillance activities. When allegations are made about purported classified government activities or relationships, regardless of whether those allegations are accurate, the existence or non-existence of the activity or relationship is potentially a state secret.

With the rise of the security-industrial complex (see the online paper "Arming Big Brother" [PDF] for a good intro to this global phenomenon), democracy just ain't what it used to be.

[Resources via Cryptome.]