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AT & T filed a lawsuit for fake DirectTV Now customer numbers



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AT & T is facing allegations that employees should create fake DirecTV Now customer accounts.


Angela Lang / CNET

AT & T is facing a lawsuit alleging that it has created fake customer accounts to make it appear that DirecTV Now is experiencing customer growth prior to its merger with Time Warner. The lawsuit, which seeks class-action status, alleges that AT & T "encouraged" its employees to transfer the service to their client accounts without their knowledge, Bloomberg reported Monday.

The amended complaint filed with the US District Court in the Southern District of New York on Friday is being filed on behalf of all individuals claiming AT & T shares prior to the $ 85-billion merger with Time Warner bought.

"Employees were taught to convert activation fees that customers usually had to pay for upgrading their phones to DirecTV Now subscriptions by giving up the fee, but still charging customers a fee," the lawsuit says , These charges were then allegedly applied to up to three new DirecTV Now accounts created using fake e-mail addresses.

Customers have not been notified that they have signed up for subscriptions. A former employee of AT & T claimed in the lawsuit that "at least half" of all DirecTV Now accounts are "fake".

"Another former employee … received between 20 and 40 complaints a week from customers who were charged DirecTV Now, even though no account was set up," the complaint said. "As a former employee put it, everyone in the sales organization knew everything."

According to the original complaint filed on 1 April, AT & T did not mention the risk factors for price increases and rebates in the run-up to the merger, which led to a decline in subscribers. "Investors have suffered heavy losses," they say.

DirecTV Now renamed AT & T TV Now fought 168,000 users in the second quarter . AT & T is about to start another streaming service, HBO Now which could reverse the company's video site.

Read the full appeal below.

Gross v AT & T by jonathan_skillings on Scribd

Published for the first time at 15:45. PT on the 16th of September.
Updated 16:30: Embeds complaint.


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