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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
An 18-year veteran of the Detroit Police Department has died after being involved in a shooting Wednesday on Detroit's west side."Today is a tragic day for the Detroit police family," Detroit Police Chief James Craig said while addressing media outside of Sinai-Grace Hospital. Two police officers from Detroit's 12th Precinct were shot when responding to a report of a home invasion.Craig said that once officers arrived on scene, occupants in the home began frantically running out of the home because of a suspect inside the home with a high-powered rifle.Additional officers were called and four total officers made entry into the home in search of the suspect. While clearing the top floor of the home, officers did not locate the suspect. As they were heading down the stairs of the home, the suspect began to open fire on the officers. One officer, a three-year veteran on the force, was shot in his left leg. An 18-year veteran on the force sustained a single gunshot wound to his neck. He died from his injuries at Sinai-Grace Hospital. Police say the suspect is now in custody. 1099
Allergic to milk products? You may want to check your pantry.Frito-Lay is recalling its Lay's Lightly Salted Barbecue Flavored Potato Chips because they 165
A Michigan man has been arrested and charged with trying to hire someone to kill his wife and then fatally poisoning her cereal with heroin in 2014, authorities said.Jason T. Harris, 44, was arrested Tuesday and is being charged with three felonies, Genesee County Prosecutor David Leyton announced at a news conference filmed by 342
About 100 people were arrested in New York City after protesters demanding an end to Immigration and Customs Enforcement (ICE) forced the closure of a major highway.Parts of the West Side Highway in Manhattan were temporarily shut down Saturday due to the protest against the federal agency, according to New York City's official 342