The above is a very important point. If true, it means that EFF wasted the time and money of AT&T and hurt its own credibility.
I object to that approach. If the government is doing something wrong, focus on the government; don't harass a private organization that may not have a choice in the matter.
On principle, I object to lawsuits such as this because they are a backhanded way of creating social policy outside of the normal democratic means. Right now Congress is taking a hard look at this particular situation (this morning's paper had a front page headline on it), which is how it is supposed to work.
Spying on enemy communications is a critical method of defense and must be kept secret, lest the enemy learn and change its codes.
As a result of those hearings laws were passed limiting the FBI and CIA and information sharing. IMHO, these restrictions may have contributed to 9/11; perhaps there would've been better tracking of potential terrorists within the U.S.
I also believe some of the domestic spying work of the 1960s and 1970s was justified because of efforts by some groups to disrupt and attack domestic targets in those years.