A lawsuit was filed on behalf of investors in AT&T Inc. (NYSE:T) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/15/2019 -- An investor, who purchased shares of AT&T Inc. (NYSE: T), filed a lawsuit over alleged violations of Federal Securities Laws by AT&T Inc.
Investors who purchased shares of AT&T Inc. (NYSE: T) 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 at firstname.lastname@example.org or call +1(858) 779 - 1554.
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."
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.
Those who purchased shares of AT&T Inc. (NYSE: T) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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