AT&T has allegedly created fake customer accounts in order to show that DirecTV Now customer base is growing before the company has a merger with Time Warner. According to the details, the lawsuit is seeking class-action status, the company encouraged its employees to add fake accounts and service to existing customers without their knowledge and consent as reported by Bloomberg on Monday.
The complaint was filed in the US District Court Southern District of New York; it was brought forward on behalf of the investors who bought AT&T stocks ahead of Merger with Time Warner worth $85 billion.
AT&T employees were told to upgrade the traditional customers to DirecTV by waiving the subscription charges but charging the customers anyway. The lawsuit claims that the fees were then applied to up to three new DirecTV Now accounts that were created using fake email addresses.
The customers were told that they were upgraded to DirecTV Now, according to a former AT&T employee, “almost half of the all DirecTV Now accounts are bogus” mentioned in the lawsuit.
According to another former employee, the company was receiving twenty to forty complaints per week from the customers that were billed for DirecTV now which they had never signed up for.
AT&T spokesperson said in an email, “We plan to defend these baseless claims in court.”
The original complaint was filed on April 1, AT&T didn’t mention the risk factors associated with its stock price increases and promo discount decreases. However, this resulted in a decreased number of subscribers ahead of the merger. The investors came across huge losses in this development.
AT&T might be trying to fix the investor’s confidence in the upcoming merger by means of faking it,
DirecTV Now which is now rebranded to AT&T TV Now is still struggling and lose 168,000 subscribers during the second quarter. The company has plans to launch yet another streaming service HBO Now which could help the company regain its streaming position.
Read the Original Complaint Below;