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Class-Action Lawsuit Accuses AT&T of Lying To Customers About DirecTV Now (kctv5.com)

A massive class-action lawsuit is accusing AT&T of lying to customers about DirecTV Now when it bought Time Warner. KCTV5 reprots: At the time, they promised customers and investors, they would be cutting prices for their streaming service called DirecTV Now. However, the lawsuit accuses the company of switching up TV packages, confusing customers by getting rid of the bundles it had been offering, charging higher prices for new types of bundles, and then bringing back the original bundles at a higher price. Investors were not happy about this because stock prices tanked. DirecTV Now was hemorrhaging customers, losing about 260,000 customers in December. "AT&T's registration statement 'touted yearly and quarterly growth trends... including quarterly subscriber gains in its DirecTV Now service sufficient to offset any decrease in traditional satellite DirecTV subscribers, such that AT&T was experiencing an ongoing trend of total video subscriber 'net additions,'" reports Ars Technica, citing a segment of the complaint.

"But in reality, 'DirecTV Now subscribers were leaving (i.e., not renewing) as soon as their promotional discount periods expired, while at the same time new potential DirecTV Now customers were unwilling to pay the higher prices and therefore not subscribing at all,' the complaint said. By the time AT&T bought Time Warner, 'AT&T's reported 'net additions' growth trend was already reversing into a severe 'net loss.' [T]he AT&T registration statement 'purported to warn of numerous risks that 'if' occurring 'may' or 'could' adversely affect the company while failing to disclose that these 'risks' had already materialized at the time of the acquisition,' the complaint said."

35 comments

  1. Playing fast and loose with the truth? by stevez67 · · Score: 1

    Kinda like 5GE isn't it? Make that shyte up and trowel it out.

    1. Re: Playing fast and loose with the truth? by Anonymous Coward · · Score: 0

      As though 5G were better than 4G by 25%. It's just a label. Could be 4.9G or 5.1G wouldn't make any difference. Ergo not important.

    2. Re: Playing fast and loose with the truth? by Anonymous Coward · · Score: 0

      No. Idiot. 5G means something. It is not some made up shit. Do you also believe in Musk?

    3. Re: Playing fast and loose with the truth? by Anonymous Coward · · Score: 0

      Careful, your ignorance is showing.

  2. About effin time by Snotnose · · Score: 4, Insightful

    These mergers are always sold as "synergy, better service for less cost". They always turn out to be "Less competition, higher prices, folks out of jobs".

    1. Re: About effin time by Anonymous Coward · · Score: 0

      The shareholders have resigned themselves to yet another failed deal. If AT&T loses more on the deal, investors will revolt.

    2. Re: About effin time by Anonymous Coward · · Score: 0

      They fall for the synergy line every time

    3. Re:About effin time by Anonymous Coward · · Score: 0

      Of course, it's "synergy [for maximizing profit], better service [internal to profit making, requiring less works] for less cost [but higher prices since there's less competition]". Really, twist just about anything a company says in the way that maximizes profit (sort or long term) for them, and that may well be precisely what they meant.

    4. Re:About effin time by luther349 · · Score: 1

      thats what happens when your share holders are so short sighted and greedy they can see the long term damage these merges cause.

    5. Re: About effin time by Anonymous Coward · · Score: 0

      Profit is what keeps a company in business but they need a product people want or need.

  3. Class actions are losers by WCMI92 · · Score: 2

    Only the lawyers get rich. And the companies don't pay enough to hurt them.

    --
    Corporatism != Free Market
    1. Re: Class actions are losers by Anonymous Coward · · Score: 0

      Yup. you know what they say, hire the best lawyer and they'll seem affordable after the fact. It's like complaining about the cost of drinks you are putting on your Amex and then plop down cash on a vacation home on the shore without batting an eye.

  4. dial tone patent by AndrewFlagg · · Score: 1

    the only thing AT&T will have left is a dial tone patent and cross connect fees. big iron got rusty and their retirees are not following their insurance and lawyers presented actuarial tables for unfunded liabilities and debt relief. oh well, momma bell sad to see you with and die, but hey, you had a good run. had to cute down a pine tree the other day, sad, but was encroaching upon my home and insurance company was frowning at me. oh well, from nut to nuthing.

    1. Re:dial tone patent by Anonymous Coward · · Score: 0

      The 80s want their Ma Bell complaints back.

    2. Re:dial tone patent by Anonymous Coward · · Score: 0

      No worries seeing that they are a utility the government will have to bail them out. They are just to big to fail. Of course once they have their much needed spa days... I mean affairs in order, they can go back to being a "service provider" and charge for "fast lanes." So all will be well in the world!

    3. Re:dial tone patent by Anonymous Coward · · Score: 0

      No worries seeing that they are a utility the government will have to bail them out.

      That's the bit that drives me crazy. America always assumes a private company must be better than say a publicly run utility, even though the publicly run utility is likely going to be non profit and bid out most of the big work anyway.

      Publicly run utilities and such may be inefficient through incompetence and poor foresight, but privately ones tend to have effectively the same problems due to scamming every last dime. One is not inherently worse than the other, and in some cases, like compared to AT&T, well I'd bet on municipal broadband every time compared to that festering pile of shit.

      Competent politicians requires, to an extent competent politicians running, and competent voters electing them. Yah, that's a problem, but with a publicly run utility, you do eventually converge to something stable and useful, if maybe not premium, and once that happens the bureaucracy keeps in there mostly.

      Competent privately run utilities are harder, since they have to compete against the ones that can afford to discount an area to death to kill off competition and then exploit it.

      So basically its sometimes the choice between incompetence and evil. Put another way you might get average service for all, versus better service for a smaller portion.

      I think for now we need to focus on bringing at least average service to everyone that doesn't have it, and if that means publicly run broadband, well, that's probably a good investment. Of course its worth noting that you can't just let companies like AT&T blindly have all the most profitable areas, without competition. That's a sure way to make the public utility fail. It's much like Trump is continuing to hack at the pillars of Obamacare. Once you remove the base support paying into the system, so your down to only people who can't get a better deal, well the system tilts under its own weight.

  5. But of course... by cpotoso · · Score: 4, Interesting

    I had this offer for DirecTV for $35/month for 3 months and a free 4K appleTV. Used it twice. Once to get my $160 appleTV for $105. The second to get another one and sell it for $120. Basically never used the service itself which was COMPLETELY USELESS. Most channels had GARBAGE and you could not skip the commercials (if you came back to the channel after surfing away, you got hit by the commercial again... ah, the beauty of streaming). So it is Netflix, Tubi or TPB for me and that's it. (But I have been considering subscription for Mubi... seems an interesting idea.)

  6. Garbage service, not promotion expiration by Anonymous Coward · · Score: 1

    As a long suffering DTVNOW subscriber (now moving on to PlayStation Vue), I can assure ATT investors that the cause of DTVNOW's decline has far, far more to do with their completely shitty service than any promo expirations. Having tried a few streaming services, I can safely say DTVNOW is the absolute worst. I would have abandoned it long ago if they weren't the only service with my favorite channel (TVG). Fortunately, that channel is now available separately for a nominal fee, and so adios DTVNOW! The buffering, inexplicable failures, lost DVR content, and just general garbageware that is DTVNOW (bordering on fraud) has driven away many many more subscribers than the $10 price bumps (after all, pretty much every other service has bumped their prices too)

    1. Re: Garbage service, not promotion expiration by Anonymous Coward · · Score: 0

      The corporate welfare queens will just go to the government with their hand out yet again. Have they no shame?

    2. Re:Garbage service, not promotion expiration by jwhyche · · Score: 2

      As one of those people that abandoned Directv Now after my promotional expired, all I can say is good riddance. The DVR service was horrible, 20 hours or 30 days I think, and they only allowed 2 streams. Three if you where willing to pitch in a extra $5. Then they where going to raise the price $5 for the package I had. I kicked cable to the curb for that bullshit.

      PSvue is superior to directvnow but doesn't have the history channel. Which is why I left it and went with directv now. But I've found that, for me, nether directv now or psvue are worth $50+ a month. I found that Philo, $14 a month has everything my family wants and is pretty cheap.

      --
      I read at +2. If your post doesn't reach that level I will not see or respond to it.
    3. Re:Garbage service, not promotion expiration by pnutjam · · Score: 1

      On Philo, can you skip commercials on dvr'd programs? I assume it's some sort of "cloud dvr"?

    4. Re:Garbage service, not promotion expiration by jwhyche · · Score: 2

      It is cloud based dvr, but yes you can skip commercials on on the dvr.

      --
      I read at +2. If your post doesn't reach that level I will not see or respond to it.
  7. Fuck ATT by Anonymous Coward · · Score: 0

    I subscribed for DirecTV when it first came out. 7 day free trial. "CANCEL ANYTIME". 3 month subscription + AppleTV (which I was planning on selling).

    The service was a buggy mess and I didn't get local channels live (and there's no real way to test this for all markets until after you sign up). I cancelled within 30 minutes. They refused to honor their own terms, and stated they could not cancel the shipment of the AppleTV.

    (The & is actually in the log.)

    AT&T : Welcome to DIRECTV NOW. May we have your name while we pull together resources and links to help get us started?
    Charise R : Hello. How may I assist you today?
    You : I signed up for DirecTV Now a few minutes ago to check it out.
    You : But because I can't get local stations where I am I have to cancel.
    You : I can't get the live Fox channel, for example, and all the on-demaind shows are delayed by 2 or 3 weeks, it looks like.
    Charise R : OK
    You : I signed up using the 3 month promo for the AppleTV. I cancelled the account already but it still lists it as going through to march.
    You : I don't want to AppleTV and I want to cancel the whole order.
    You : I signed up 30 minutes ago.
    Charise R : I'm sorry, but this is a prepay product and it is paid through March.
    Charise R : You can cancel, but you will still be receiving the Apple TV and you will have the service for 3 months. If you cancel, you will just no longer have the service after 3 months.
    You : But I'm within the 7 days
    You : The 7 days is a free trial
    You : and the 3 months starts after that
    You : I'm cancelling within the 7 day free trial
    You : It said I could cancel within the trial
    Charise R : You actually still get the free 7 days of service, but there is no cancellation during the free 7 days when you prepay.
    You : That wasn't stated.
    You : Please cancel the whole order.
    You : If you can't do this please connect me to a supervisor.
    Charise R : Hold on just a moment please. I'm looking on your account.
    You : Sure.
    Charise R : Just one more moment.
    Charise R : I'm so sorry, but you are unable to cancel the account. We do not connect to a supervisor, but I can have one contact you in the next 24 hours if you still need.
    You : You may cancel at any time and continue accessing the programming through the end of your renewal period. View, modify or cancel anytime at directvnow.com. No refunds or credits for any partial-month periods or unwatched content.
    You : That states that I can cancel anytime at directvnow.com
    You : I don't get a refund for partial months
    You : But my 3 months haven't started.
    You : SO I should be fully refunded.
    You : As I'm within the 7-day window.
    You : If you cannot cancel the account, I understand.
    You : Please do not send the AppleTV.
    Charise R : Just to clarify, you can cancel the account, but it will be prepaid through the date you paid through. Again, I'm sorry for any confusion, but there will be no refunds.
    You : That only says no refunds for partial months.
    You : I am not in a partial month, I'm in a free trial.
    You : I will just cancel it via my credit card.
    You : Do not send the AppleTV.
    Charise R : We are unable to stop the shipment.
    You : That's unfortunate.
    You : I will cancel the payment via my credit card.
    You : If I receive the APpleTV I will refuse shipment.
    Charise R : I understand. Are there any other questions you may have?
    You : No. Please have a supervisor contact me about this as soon as possible.
    Charise R : Hold on just a moment while I get this set up.
    Charise R : Is the phone number on your account the number you wish the supervisor to contact you at.
    You : Yes, but please only contact me via email.
    Charise R : I can request this, but it may be better for you to talk to them directly. Are you sure you want me to request the email way?
    You : Yes, so I have a written record.
    Charise R : Ok. Hold on one more moment.
    Charise R : Do you want to use the email from your account?
    Yo

    1. Re: Fuck ATT by Anonymous Coward · · Score: 0

      You sound difficult.

    2. Re: Fuck ATT by Anonymous Coward · · Score: 0

      You must be a late millennial or gen z fuckwit. Before everything got outsourced, services actually worked as advertised, you could speak to a supervisor on a phonecall, companies honored their agreements, and typically the also followed the law as well.

  8. AT&T Executives are a lost cause by Anonymous Coward · · Score: 0

    I present the following as evidence:

    1) The failed T-Mobile Merger which cost AT&T $5B ( CEO still has his job )
    2) Let's buy DirecTv just as everyone and their brother are cutting the cord because $$$ and nothing worth watching is on it
    3) Let's buy HBO which, once Game of Thrones is over, will become just another no-name movie channel
    4) Let's also add CNN to our repertoire. One of THE most hated news ( if you can call them that ) outlets in existence
    5) We're going to pin all our hopes on 5G ( and pray that it works well enough to sell - Prediction: I doubt it )
    6) Let's be a Cloud Company ! We're not cozy at all with the Government who loves to peek at your data. . . We promise !
    7) We want to be a content exclusive streaming service too because DirecTv Now worked out so well

    On top of all this, these fools believe they can slash and burn their workforce in an effort to reduce their debt ( which stands at a commercial company record of ~$170B USD ) which won't even scratch the surface of it. Some folks are wondering if they're going full IBM and targeting their senior employees who were grandfathered into the now extinct pension plan. ( Don't have to keep that funded if we fire everyone we promised it to. )

    They're selling off prime real-estate for the same reasons. ( Assuming anyone is left that can do the work to prep the buildings so they CAN be sold. Lots of equipment and data runs through those buildings that all have to be relocated first. )

    AT&T doesn't know WHAT the hell it wants to be when ( and if ) it ever grows up.

    Ed Whittacre needs to stride into Randall Stephenson's office, go full Super Saiyan and just slap the shiznit out of the man for being clueless and destroying a company.

  9. What do they mean now? by No+Longer+an+AC · · Score: 1

    They've been lying for years.

    Oh, that's Direct TV Now?

    Oh, that's different. Never mind. This is Emily Litella.
     
    /Actually, it's not different. It's business as usual.

  10. Why I left DirecTV Now by Anonymous Coward · · Score: 1

    I have an account but can't be buggered to log in. Anyway, I was a DTV customer of theirs for quite a while, and I loved the package I was on, I wish it carried my local stations, but you can't win them all. Then one day I got an email from DTV saying, in essence, "Hey, that cool package you're on? Yeah, you're losing it. But here's the replacements!" The new packages had half the stations, same cost, no local stations....and I couldn't get everything I wanted that I had before, and they TRIPLED the cost of HBO.

    No thanks. So I dumped them. Instantly. Hopped over to Playstation Vue, got all the previous stations, HBO and Showtime, and all my local stations (which was pretty awesome), and the only station I lost was the History channel. A small price to pay considering the cost remained the same for me--oh, and HBO and Showtime were included in the cost.

    So, if some twat from DTV sees this: this is why you lost me, and lots of other people--your abject stupidity and greed. You didn't listen to the customers, you didn't provide good service, and your prices upon change to the "new format" were shit. This is ENTIRELY YOUR FAULT.

    I sincerely hope the class action process nets me as little as 10 dollars, because to me, that's the pound of flesh I would be happy with to show them how utterly stupid AT&T became. They had been in a prime position....and squandered it. Fuck 'em.

    1. Re:Why I left DirecTV Now by PPH · · Score: 1

      the only station I lost was the History channel

      History did nothing wrong.

      --
      Have gnu, will travel.
    2. Re:Why I left DirecTV Now by Anonymous Coward · · Score: 0

      History, Discovery, and some other channels that I used to like have gone to hell! Discovery became the Ice Road Truckers/fishing for crabs channel. Similar crap shows took over History, and several other channels. Overall, cable TV has gone to hell, and the prices are through the roof and into the stratosphere!

    3. Re:Why I left DirecTV Now by pnutjam · · Score: 1

      Except force bundling.

  11. AT&T? Lie? The Hell You Say! by Anonymous Coward · · Score: 0

    A company as honorable as AT&T would never lie.

    If you need to ask if that was sarcasm, you clearly have never dealt with AT&T before.

  12. AT&T over hyped under delivered by Anonymous Coward · · Score: 0

    AT&T is absolutely a horrible company up there with the best of the worst. But again why not skip the teaser rates for new customers and give everyone a decent rate on services? Its probably a numbers games, you get that increase in subscribers for a period with deals, but then they bail because the regular rate is so much higher. Why nobody at AT&T could figure this out since its sort of a business 101 lesson that you don't do stunts for short term gain when you risk losing big time long term.

  13. CLASS ACTION?!?!?! by Anonymous Coward · · Score: 0

    Isn't class action obsolete?
    What ever happened to binding arbitration on a case-by-case basis?

    Won't somebody think of the trial lawyers?