AT&T Inc. (NYSE: T) Investor Securities Class Action Lawsuit 04/01/2019

If you purchased a shares of AT&T Inc. (NYSE: T), you have certain options and for certain investors are short and strict deadlines running. Deadline: May 31, 2019. NYSE: T investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
AT&T
Case Name: 
AT&T Shareholder Class Action Lawsuit 04/01/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: T
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/01/2019
Class Period Begin: 
10/22/2016
Class Period End: 
10/24/2018
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
05/31/2019
Summary: 

An investor in shares of AT&T Inc. (NYSE: T) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by AT&T Inc. in connection with certain allegedly false and misleading statements.

Dallas, TX based AT&T Inc. provides telecommunication, media, and technology services worldwide. In June 2018, in connection with its acquisition of Time Warner Inc. (Time Warner), AT&T Inc. issued approximately 1.185 billion new shares of AT&T Inc. common stock to former shareholders of Time Warner common stock. The Registration Statement issued in connection with the stock issuance touted yearly and quarterly growth trends in AT&T Inc.’s Entertainment Group segment, particularly Video Entertainment, including quarterly subscriber gains in its DirecTV Now service sufficient to offset any decrease in traditional satellite DirecTV subscribers, such that AT&T Inc. was purportedly experiencing an ongoing trend of total video subscriber Net Additions.

It subsequently became clear that AT&T Inc. had substantially increased prices while discontinuing promotional discounts for its DirecTV Now service and was consequently losing subscribers. On October 24, 2018, AT&T Inc. announced its third quarter 2018 results and revealed, inter alia, a dramatic reversal of its reported total subscriber “Net Additions” trends. Traditional DirecTV satellite subscriber losses jumped over 25% from 286,000 to 359,000 quarterly. Meanwhile, DirecTV Now subscribers plummeted over 85% from 342,000 down to 49,000 quarterly. These dramatically diminished DirecTV Now subscriber gains were nowhere close to offsetting the dramatically increased traditional satellite subscriber losses. As a result, AT&T’s 80,000 total video subscriber “Net Video Additions” had reversed into a 297,000 total subscriber “Net Loss.”

According to the complaint the plaintiff alleges on behalf of purchasers of AT&T Inc. (NYSE: T) who acquired AT&T common stock pursuant or traceable to the registration statement and prospectus issued in connection with AT&T’s June 2018 acquisition of and merger with Time Warner, and/or who purchased or otherwise acquired AT&T securities between October 22, 2016 and October 24, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that Defendants made false and/or misleading statements and/or failed to disclose that AT&T’s Registration Statement touted false and misleading financial results, trends, and metrics and omitted material facts rendering those financial results, trends, and metrics materially misleading. Principally, the Registration Statement touted yearly and quarterly growth trends in AT&T’s Entertainment Group segment, particularly Video Entertainment, 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.”, that The Registration Statement also 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, that AT&T had substantially increased prices, while at the same time discontinuing promotional discounts for its DirecTV Now service. As a result, 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. Thus, by the time of the Acquisition, AT&T’s reported “Net Additions” growth trend was already reversing into a severe “Net Loss”, and that as a result of the foregoing, Defendants’ positive statements about Bristow’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.