AT&T Hit with Class Action Suit Alleging AT&T Pumped Up Subscriber Count for DirecTV Now

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A class action suit has been filed alleging that AT&T pumped up the subscriber count for its DirecTV Now streaming service (since rebranded to AT&T TV Now) to mask "serious technical problems due to premature roll-out." AT&T has recently reported subscriber losses across multiple platforms, including AT&T TV Now. The complaint claims that AT&T and "Executive Defendants," which includes CEO Randall Stephenson, "falsely depicted DirecTV Now as a fast-growing product with increasing subscribers and strong margins that would offset declining subscriber levels in AT&T’s other video products, including its mature satellite DirecTV product." Instead, the plaintiffs allege, that depiction was a "mirage" created by salespeople "dropping DirecTV subscriptions into customer accounts without their knowledge using short-term promotions" that were still used in public statements about the service's "dramatic growth" despite the expiring discounts that led to lots of churn. The suit also alleges AT&T salespeople were directed to bundle multiple accounts in a single activation, even creating false e-mail addresses and running a credit card multiple times to create imaginary accounts.

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