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This week, AT & T is now facing a third lawsuit, claiming to have misled investors about the growth of DIRECTV NOW, now called AT & T TV NOW. Pomerantz LLP and Labaton Sucharow LLP now claim that their investigation revealed that the use of false accounts to increase the number of DIRECTV NOW subscribers was a "massive and national" problem.
According to the trial:
AT & T has encouraged the creation of fake accounts receivable to perpetuate the illusion of dynamic growth of DirecTV Now. The DirecTV Now subscriber numbers publicly announced by the defendants were fake and artificially inflated. AT & T employees from across the country were very motivated to create fake DirecTV Now accounts, using various tactics to secretly add the product to customers' AT & T accounts without their knowledge. For example, employees learned and were actively encouraged to convert activation fees that customers had to pay to upgrade their phones to DirecTV Now subscriptions. fake e-mail addresses without informing the customer of his subscription. A former Michigan employee estimated that about 40 to 50 percent of customers with whom he had done business early in 2017 complained of being charged for DirecTV Now, which they told him was not never sign. Another former employee in Hawaii said that at least "half" DirecTV Now's accounts were "fake", based on what he saw internally. Another former employee who handled complaints from online customers from across the country estimated that he was receiving between 20 and 40 complaints a week from customers charged for DirecTV Now, while he did not go to the office. was not registered for an account.
This is similar to what would have happened in Hawaii and would have led to the layoff of several AT & T employees. According to recently dismissed employees, AT & T officials have pushed the store's sellers to create multiple accounts. When someone in a store sign up for DIRECTV NOW, up to 5 accounts are sometimes created. The practice was to cancel them after the sale so that the employee could earn a bonus commission, but a current employee of AT & T states that you should use bank statements.
Pomerantz LLP and Labaton Sucharow LLP are seeking a class action suit to represent investors who were injured when the number of DIRECTV NOW subscribers began to decline.
In the past, AT & T has described other lawsuits such as this one as "baseless" and "totally groundless".
Cord Cutters News has contacted AT & T to comment and update our story as we learn more.
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