AT&T Sued for Inflating DirecTV Now Numbers (1 Viewer)

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Zookster

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Dec 19, 2004
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It's hard to imagine things getting worse for AT&T regarding DirecTV/AT&T Now. From Engadget:

AT&T sued for allegedly inflating DirecTV Now subscriber numbers

A lawsuit seeking class action status says AT&T is inflating AT&T TV Now -- previously known as DirecTV Now -- subscriber numbers by creating fake users. It's accusing the company's management of carrying out the scheme in an effort to make the service look good in the eyes of investors even though it was struggling with serious technical and financial problems. The management did so, according to the lawsuit, by encouraging employees to add DirecTV Now subscription fees to subscribers' accounts without their knowledge or consent.

One of the methods employees allegedly used is tacking on up to three accounts to a single customer's phone number -- including those who just signed up for a free trial -- and running their credit card three times. In some cases, customers were reportedly charged for a subscription even though they made it clear that they didn't want it. Sales employees allegedly made and used fake email accounts in both instances.

Customers were sometimes charged for a DirectTV Now subscription but were told that they were being charged for another thing. There were reportedly even times when customers were told that DirecTV Now was part of a package when they were actually charged an extra monthly fee.

The investors involved in the lawsuit called the service's "apparent success" a "complete mirage." They said the "information provided by multiple former employees of AT&T and its affiliates from across the country collectively confirm a wide-ranging fraud, perpetrated at the highest levels of the company." As for AT&T, the company told Bloomberg and later confirmed to Engadget that it plans "to fight these baseless claims in court." We also reached out to the carrier for more details and will update this post when we hear back.
 
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comfortably_numb

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They'll settle and pay it. Part of the cost of doing business. I'm sure ATT felt the potential exposure was worth the risk. If they did what they are accused of doing, it wasn't ethical- but how many multi-national companies worth billions of dollars are ethical?
 
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Zookster

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Dec 19, 2004
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Here and Now
They'll settle and pay it. Part of the cost of doing business. I'm sure ATT felt the potential exposure was worth the risk. If they did what they are accused of doing, it wasn't ethical- but how many multi-national companies worth billions of dollars are ethical?

This reminds me of the recent Wells Fargo scandal, with their employees nationwide creating tens of thousands of fake accounts under their customers' names, often charging the customers extra fees for them. There really needs to be more accountability, but the corporate lobbyists own almost every politician in Washington.
 

comfortably_numb

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This reminds me of the recent Wells Fargo scandal, with their employees nationwide creating tens of thousands of fake accounts under their customers' names, often charging the customers extra fees for them. There really needs to be more accountability, but the corporate lobbyists own almost every politician in Washington.

I remember that. They had some recent TV commercials trying to tie their old West history to the present, called "Rebuilding Trust."
 
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