AT&T Slapped With Class Action Suit Over Alleged Bait-And-Switch Pricing Of DirecTV Now
Last summer, AT&T purchased Time Warner. The company promised customers that it would slash the prices for DirecTV Now, a subscription streaming television service. The class action lawsuit argues that AT&T not only refused to reduce prices, but that it purposely mislead their customers. AT&T eliminated existing streaming bundles and
The lawsuit also claims that AT&T “touted false and misleading financial results, trends, and metrics and omitted material facts rendering those financial results, trends, and metrics materially misleading.” DirecTV Now lost over 260,000 customers in December, but AT&T purposely provided misleading information to cover this loss. The company also did not disclose the potential risks of price increases to their investors.
There are technically two class action lawsuits against AT&T over this issue. One lawsuit has been filed by Pomerantz LLP law firm on behalf of the investors, and the other has been filed by Klein Law Firm on behalf of the shareholders. Two other law firms are currently investigating the matter and may also file separate lawsuits.
AT&T claims that the lawsuit is ridiculous. A spokesperson stated that it is a “carbon copy of a baseless suit filed in February. In both cases, the claims are wholly without merit.” At the moment, the plaintiffs have not demanded a certain amount of compensation, but argue that the amount will be decided during court proceedings. It will be interesting to see how AT&T fares during all of the upcoming court cases. Let us hope that the company will be more honest about its offerings in the future.