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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 volcanic island in New Zealand erupted Monday in a tower of ash and steam while dozens of tourists were exploring the moon-like surface, killing five people and leaving many more missing.Police said the site was still too dangerous hours later for rescuers to search for the missing.Police Deputy Commissioner John Tims said the number of missing was in the double digits but he couldn’t confirm an exact number. He said there were fewer than 50 people on the island when it erupted and 23 had been taken off, including the five dead.Tims said experts had told them the island remained unstable but search and rescue teams wanted to get back as quickly as they could. He said there had been no contact with any of those who were missing.He said both New Zealanders and overseas tourists were among those who were dead, missing or injured. He said most of the 18 who survived were injured and some had suffered severe burns.Some of those involved were tourists from the Royal Caribbean International cruise ship Ovation of the Seas.“A number of our guests were touring the island today,” the company said. “We will offer all possible assistance to our guests and local authorities. Please keep all those affected in your prayers.”The cruise ship, which had left from Sydney last week, was scheduled to sail to the capital Wellington on Monday night but the company said it would instead remain in the Tauranga port overnight until it learned more on the situation.“My god,” wrote Michael Schade on Twitter as he posted video of the eruption. “My family and I had gotten off it 20 minutes before, were waiting at our boat about to leave when we saw it. Boat ride home tending to people our boat rescued was indescribable.”His video showed a wall of ash and steam around the island and a helicopter badly damaged and covered in ash. He said one woman was badly injured but seemed “strong” by the end.White Island sits about 50 kilometers (30 miles) offshore from mainland New Zealand. Already people are questioning why tourists were still able to visit the island after scientists recently noted an uptick in volcanic activity.Prime Minister Jacinda Ardern traveled to the region late Monday. She said the incident was “very significant.”“All our thoughts are with those affected,” she said.Australian Prime Minister Scott Morrison said he’d offered Ardern his support.“Australians have been caught up in this terrible event and we are working to determine their wellbeing,” Morrison wrote on Twitter.Brad Scott, a volcanologist with research group GNS Science, said the eruption sent a plume of steam and ash about 12,000 feet (3,660 meters) into the air. He said it had also affected the whole of the White Island crater floor.The GeoNet agency, which monitors volcanoes and earthquakes in New Zealand, raised the alert level on White Island from one to two on Nov. 18, noting an increase in the amount of sulfur dioxide gas, which originates from magma deep in the volcano. It also said at the time that over the previous weeks, the volcanic tremor had increased from weak to moderate strength.Scott said the alert level was often raised and then later dropped again without any eruption. He said there hadn’t been any major incidents with tourists visiting the island in the past, although there had been some close calls.Scott said it was not for him to say whether the island was safe enough to host tourists immediately before Monday’s eruption.Ardern said the focus remained on the search and rescue mission for now and questions about whether tourists should be visiting would be addressed later.GeoNet at first raised its alert level to four, on a scale where five represents a major eruption. It later dropped the alert level back down to three. Scott said that was because the eruption wasn’t sustained beyond the initial blast.“In the scheme of things, for volcanic eruptions, it is not large,” said Ken Gledhill from GeoNet. “But if you were close to that, it is not good.”White Island is northeast of the town of Tauranga on North Island, one of New Zealand’s two main islands. Experts say it’s New Zealand’s most active cone volcano and about 70% of the volcano lies under the sea.Twelve people were killed on the island in 1914 when it was being mined for sulfur. Part of a crater wall collapsed and a landslide destroyed the miners’ village and the mine itself.The remains of buildings from another mining enterprise in the 1920s are now a tourist attraction, according to GeoNet. The island became a private scenic reserve in 1953, and daily tours allow more than 10,000 people to visit the volcano every year.The island is also known by the indigenous Maori name Whakaari. 4704
An American woman died after a shark attack in the Bahamas Wednesday, according to a spokesperson for the Royal Bahamas Police Force.Jordan Lindsay, 21, of Torrance, California, had been on a snorkeling expedition with her family near Rose Island, according to 272
A woman is in custody and a toddler is missing from Penn Hills, Pennsylvania, after the child's father said a rideshare driver abducted his daughter on Saturday evening, according to police documents and a news release.Paul Johnson said he was riding in a car with Lyft and Uber stickers with his daughter and a friend, according to a criminal complaint filed by the Allegheny County police.Johnson said that when he got out of the car and went to get his daughter out of the car seat, the driver drove away with the toddler, the complaint said. The complaint didn't identify the child, but a police news release said she is named Nalani.Johnson told detectives he tried calling the driver's cellphone multiple times but she never picked up, so he called 911 around 5 p.m. ET.Police arrested driver Sharena Nancy, 25, in the vehicle during a traffic stop around 7:30 p.m. ET, but did not find the child inside, the complaint said.According to the complaint, Nancy told detectives that Johnson sold the child to an individual for ,000 and asked her to complete the dropoff.Nancy said he showed her a photo of a black woman she was supposed to meet and asked her to drive the toddler "20 minutes" from a gas station in Monroeville along US Route 22 to meet the woman, the complaint says.Nancy said she was told the woman would then "flag" her down and Nancy was to turn over the toddler, the complaint says.Nancy told detectives she encountered a silver SUV with out-of-state plates parked on the side of the road and did as she had been instructed -- passing the toddler and the carseat over to a woman standing next to the car and then driving off. Nancy told police she also saw a second woman inside the SUV.Nancy said she then drove around, smoked cigarettes and talked on the phone with her husband, the complaint said.Nancy, who is being held without bail at the Allegheny County jail, was arraigned on Monday after being charged with kidnapping of a minor, interference with custody of children and concealment of whereabouts of a child. Her preliminary hearing is scheduled for September 16.CNN was unable to identify or reach an attorney for Nancy.Nalani's grandmother, Taji Walsh, told 2210
A right-wing political action committee has taken credit for staging a viral video taken at a town hall meeting held by Rep. Alexandria Ocasio-Cortez, D-NY, in which an attendee suggested that eating babies was a solution to the climate crisis.The video was taken Thursday at a town hall held by Ocasio-Cortez in her home district of Queens, New York. After asking the crowd for questions, a woman stood up and began speaking."We only have a few months left. I love that you support the New Green Deal, but it's not getting rid of fossil fuels. It's not going to solve the problem fast enough," the woman said. "A Swedish professor has suggested eating dead people, but that's not fast enough. So I think your new campaign slogan should be this: We have to start eating babies."The unidentified woman was eventually led out of the town hall. Ocasio-Cortez did not respond to the woman's suggestion but instead pivoted to fighting climate change.The video eventually got the attention of President Donald Trump. Trump retweeted a version of the video posted by his son, calling Ocasio-Cortez a "Wack Job." It's unlikely the president knew if a right-wing PAC claimed credit for the stunt. 1199