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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
Actor Jussie Smollett won't appear on the final two episodes of the current season of Empire, the producers of the show told the 141
Allegations of cheating have been a constant part of the Little League World Series, and this year's tournament is no different. The Barrington Little League team from Rhode Island will represent the New England region in this year's Little League World Series, but one manager said they cheated in order to gain entry to the tournament. Goffstown Little League manager Pat Dutton accused the Barrington team of stealing signs in both games the two squads played each other in the New England regional, including in last Saturday's regional final that Barrington won 6-4. “You can see (runners on second base) leaning in, looking in and they’re doing hand gestures to their kid (at the plate) indicating what kind of pitch it is and where it’s located,” Dutton told the 782
A woman was arrested and charged after trying to attack a Burger King clerk over the wrong order in Livonia, Michigan, back in January.According to police, the woman got food from the Burger King and then came back the next day, demanding a refund because one of her burgers had tomatoes on it. Police say the clerk told the woman they could give her food or a credit, but couldn't give her money back.Police then say the woman got angry and threw the cookie rack at the clerk, tried to climb over the counter and threw a wet floor sign. It was all caught on surveillance video seen above.Eventually, the woman left but came back and threw food at the clerk's face. Less than two weeks after the Burger King incident, the woman also caused a disturbance at a Cricket Wireless store in Warren, Michigan. Police say she was disrupting display cases and stole a phone, and that she was mad she didn't get a phone with her new contract.In Livonia, she was charged with assault and battery, obstruction of justice, disorderly conduct and malicious damage of property. In Warren, she was charged with larceny and disturbing the police. 1141
After originally not having a briefing scheduled, the White House opted Tuesday afternoon to hold a briefing to deliver an update as cases of COVID-19 continue to increase nationwide. As of Tuesday afternoon, there are more than 51,000 coronavirus cases throughout the United States, according to John Hopkins University data. In the last two days, the tone coming from the White House has shifted from one of preparedness to one of trying to reopen segments of the economy. On Monday, President Donald Trump said that “we cannot let the cure be worse than the problem itself," suggesting that the economic impact of the nation's coronavirus response could be worse than the spread of the virus. Trump said that he believes that the United States can “do both” protect lives and reopen the economy. On Tuesday, Trump said on Fox News that he has a goal to have the economy “opened up and just raring to go by Easter.”At the White House's briefing on Tuesday, Trump said that data would inform his decision. But when asked why he made Easter a target date, he said that it's a "special day."Dr. Anthony Fauci, who has been advising the White House through this crisis, said that any goals should be flexible. But Trump’s approach is at odds of many state governors and health directors. In New York, which has seen nearly half the number of US cases of coronavirus, Gov. Andrew Cuomo gave a dire proclamation of what is to happen in the weeks to come. “FEMA says we're sending 400 ventilators. Really? What am I going to do 400 ventilators when I need 30,000?” Cuomo said. “You pick the 26,000 people who are going to die because you only sent 400 ventilators.”Meanwhile, the US Senate is nearing an agreement on a multi-trillion-dollar bill to offer assistance to companies and individuals affected by the economic impacts of the coronavirus. "I just finished a very productive meeting with secretary Mnuchin, the white house congressional liaison Eric Ueland and Mark Meadows, the president's acting chief of staff,” Senate Minority Leader Chuck Schumer. “Last night, I thought we were on the five yard line. Right now we're on the two.” 2150