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A new shareholder complaint against AT&T claims the company encouraged employees to create fake accounts for its DirecTV Now streaming service to juice its subscriber numbers and mislead investors ahead of its acquisition of Time Warner, shareholders allege in an amended complaint filed last week as part of a lawsuit against the company.According to the lawsuit, employees — who faced aggressive sales quotas — were "taught and actively encouraged" to convert activation fees that customers paid to upgrade their phones into the price for multiple DirecTV Now subscriptions. This was allegedly executed by "waiving the fee, but charging the customer anyway, and applying the payment to up to three DirecTV Now accounts using fake email addresses."The complaint claims customers were not told they had been signed up for a subscription, and that the company is said to have fielded regular complaints from customers who said that they were billed for accounts they did not sign up for. The complaint also details other alleged methods for increasing subscriptions without clients' consent.The purpose of these efforts, the lawsuit alleges, was to create the false impression that the service was compensating for declines in the legacy DirecTV satellite business, and to help justify the company's acquisition of Time Warner, now called WarnerMedia. WarnerMedia is CNN's parent company.CNN Business asked AT&T to respond to the merits of the lawsuit as well as for comment on specific allegations within it, such as claims the company pressured employees by setting aggressive sales targets and that employees were encouraged to use unrelated fees to create DirecTV Now accounts."We plan to fight these baseless claims in court," AT&T said in a statement in response.Plaintiffs include Local 449, a union pension fund based in Pittsburgh, and Melvin Gross, an investor who exchanged Time Warner stock for AT&T stock as part of the acquisition.DirecTV Now, which AT&T launched in late 2016, was billed as a key part of the company's pivot to entertainment. The lawsuit alleges that executives, including CEO Randall Stephenson, were deceitful in claiming that DirecTV Now's growth was stable, and that it was driven by "organic" demand and only limited promotions.But beyond the alleged inflation of subscriber numbers at unwitting consumers' expense, the service also suffered from significant turnover as customers jumped from one discounted streaming service to another, according to the complaint.The complaint says the plaintiffs and their attorneys spoke with a number of current or former AT&T employees who gave information about the alleged scheme. It refers to one former employee in Michigan who allegedly estimated that around 40% to 50% of the customers he dealt with starting in early 2017 complained of being billed for DirecTV Now subscriptions that they said they had not signed up for.The allegations come at what is for several reasons a delicate time for the company.Stephenson just 3043
Americans borrowed a staggering billion in the past year to pay for health care, a new survey finds.About 1 in 8 had to resort to borrowing to afford care in the previous year, according to a 208
Amid the COVID-19 outbreak, many schools are closing. Teachers across the country are getting creative, even taking their classrooms remote. Many schools across the country have canceled classes, but not all. Some have asked students to take their learning into their homes. One Colorado charter school is making it all happen and finding some benefits in the process. Math teacher Marilyn Hartzell has turned her kitchen into an at-home classroom.“Our group of schools decided that we would try to teach online,” Hartzell said.The school sent students home with Chrome Books in order to continue their education online.Aside from the location, the school day looks very much the same. Instead of classrooms, students are jumping from one Google chat class to the next.“I think for right now, because this is super new, the engagement is super high,” Hartzell said.There are some benefits about teaching remote.“It takes a lot longer to set up these assignments online, but in the end, the grading part and the ability to analyze the skills and what the kids are understanding is a lot faster,” Hartzell said.With technology comes challenges. Hartzell says it’s hard to ask students to fix their wifi. But, if technology fails all together, she has pre-recorded lessons and posted them on YouTube.While class for many students around the country has been postponed, Hartzell and her students are embracing remote school.“We are anticipating we probably won’t come back this school year,” she said.However, Hartzell wants everyone to keep in mind that although technology is a great tool, it doesn’t teach children. 1627
A Minnesota woman has filed a lawsuit against a local drugstore and two pharmacists after she says she was denied a prescription for emergency contraception due to personal beliefs.Andrea Anderson, 39, and her longtime partner have five children between their biological and foster children. The family lives in McGregor, a town of about 400 people in rural Minnesota. After the couples' regular means of contraception failed, Anderson called her gynecologist. She told 483
A new study shows that women who take birth control pills are less likely to develop the most aggressive types of ovarian cancer. "Among those who used the birth control pills, there were 46 percent lower odds of being diagnosed with ovarian cancer that resulted in death within 12 months of the diagnosis," Jennifer Mongiovi, a PhD student at the University at Buffalo and one of the authors of the study, said.The research also found over a five year period birth control pills reduced the likelihood fatal ovarian cancer by 32 percent. "By taking birth control pills, you can stop as much damage being done to your ovaries from your ovulation, and essentially lower your risk of future damage, such as cancer," Mongiovi said.However, researchers said that before you go out and buy birth control pills, you should consult with your doctor about your medical history and what is appropriate given your circumstances."With anything there are trade offs on both sides. Birth control is a hormone so you are potentially putting yourself at a greater risk of breast cancer. So that's something you definitely need to review your medical history. What essentially is the biggest risk to you," Mongiovi said.The research was conducted at Roswell Park. 1259