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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
A real-life Grinch took nastiness to a new level after snatching a gift from a doorstep and leaving a sarcastic "thank you" note for the victim.Hilary Smith ordered a Christmas gift for her boss and had it delivered to her snowy home in St. Paul, Minnesota. But she never saw the package."I looked down, and there was a piece of notebook paper folded neatly on the top step, where the package probably should have been," Smith told 443
A New Jersey couple expecting their first baby had plans to get married in a small civil ceremony two weeks before their child arrived. Their baby, however, had other plans.Michael Gallardo said he and his fiancee, Marie Margaritondo, were in the middle of moving into a new home when Margaritondo went into labor on Memorial Day. It was two weeks before the baby's June 10 due date and two days before the wedding ceremony was to take place.Gallardo, 45, said they rushed to Morristown Medical Center and were given paperwork to sign listing Gallardo as Margaritondo's fiance, not her husband."What really sparked it is when they had brought in the paperwork and said because you weren't married he wouldn't be able to be my proxy," Margaritondo, 44, said.Gallardo told CNN they asked whether there was a chaplain in the hospital so they could exchange vows before the baby arrived, and "the doctor thought we were joking." But once he realized they were serious, the hospital staff sprang into action.Gallardo said one nurse went online to see whether she could get ordained, one went outside to pick flowers for a bouquet and one went in search of a chaplain."They went above and beyond," he said of the nurses who helped them that day. "Luckily I had already picked up the marriage license."Someone managed to track down the medical center's on-call chaplain, according to a hospital spokesperson, and the chaplain married the couple in front of their mothers and the hospital staff. "We literally said 'I do' and the doctor was like 'let's go' and wheeled the bed into the OR," Gallardo said.Soon after, Michael Preston Gallardo entered the world via cesarean section. "It goes to show you can't map out and plan life," Gallardo said.The couple have been together for three years and got engaged last summer. They met at a mall, where Margaritondo was working as a stylist and Gallardo was a personal shopping customer.They call their son a "miracle baby" and say they want to have a bigger wedding celebration in 2020, maybe on the baby's first birthday -- unless Michael Preston has other plans. 2114
Alan Naiman was known for his frugality -- he wore Costco jeans, bought his favorite pocket T-shirts at a grocery store and squirreled away every penny he could. So when he died, friends were surprised to learn that he was leaving more than million to charities in the Seattle area.The 63-year-old never married and never had children, but kids were very important to him. He fostered a few children and cared for his brother, Daniel, who had developmental disabilities.Naiman became a social worker after leaving a career in banking."He was a highly valued employee who was dependable and dedicated to his work," Washington State Department of Children, Youth and Families spokeswoman Debra Johnson told CNN.He worked three jobs to get established in the new field, his friend Shashi Karan told CNN.Karan and Naiman worked together at the bank in the '80s and kept in touch over the decades until his death on Jan. 8, 2018."He was just that kind of guy that he couldn't just spend the money. It was just in his nature to save the money and put it aside," Karan said.Karan said he was one of the few people who knew just how much money Naiman had."I think he always knew that he was going to leave his money to charity," Karan said.The friends had talked about investments and savings over the years, and when the time came for Naiman to make a will he asked Karan to be his executor.He said Naiman received a sizable inheritance when his father died, which added to his fortune.The scrimping, saving and deal hunting was more like a hobby to Naiman than a sacrifice."Saving money was sort of a game to him," Karan said. "He would brag about how he had a whole day out and didn't have to spend a single cent."Naiman loved cars, and when his brother died in 2013 he made a rare splurge on himself and bought a Scion FR-S sports car."It's a nice little sports car, but it's not a Mustang or a Corvette or a Porsche that he easily could have afforded," Karan said.Naiman considered doing more traveling or buying a house with a nice view, but his cancer interrupted those plans.Karan said that after his diagnosis, Naiman spent a lot of time researching charities.One group that's benefited from his kindness is the Pediatric Interim Care Center, which cares for medically fragile babies suffering from prenatal drug exposure.The group 2349
A team of St. Lucie County firefighters went above and beyond to help an elderly man in need.According to the St. Lucie County Fire District, Lt. John King, Justin Harnage, and Jeremy Rouse responded to a home on in Fort Pierce, Florida, on Tuesday after an 86-year-old man fell and was unable to get up.Officials said the elderly man has trouble walking and needed help getting into his wheelchair, which was located outside on the patio.Noticing that the home didn't have a proper wheelchair ramp, the three firefighters went back to their fire station, built a wheelchair ramp out of plywood, then took it back to the elderly man's home and installed it at his front door."Acts like these, which are above and beyond the call of duty, reinforce the Fire District motto: 'Our Family Serving Yours.'" said Division Chief Aaron Shaw. 845