The Shareholders Foundation announces that an investor who currently holds shares of AT&T Inc. (NYSE:T) filed a lawsuit against directors of AT&T Inc. over alleged breaches of fiduciary duties in connection with AT&T’s data plan.
Investors who are current long term stockholders in AT&T Inc. (NYSE:T) shares, have certain options and should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 – 1554.
The plaintiff alleges that AT&T’s throttling of its unlimited data plan for mobile phone users potential exposes AT&T Inc. to billions of dollars in potential claims.
The plaintiff claims that in October 2014 AT&T’s multi-year scheme to throttle its unlimited data plan for mobile phone customers was revealed when the Federal Trade Commission sued AT&T Inc in San Francisco Federal Court to stop the practice and seek restitution to customers. The plaintiff says that the Federal Trade Commission claims that AT&T Inc fails to adequately disclose to customers on unlimited data plans the consequence of using what the company decides is too much data. The Federal Trade Commission claims that beginning in July 2011, AT&T Inc began throttling users on its unlimited plans, setting the data-use threshold at 2 gigabytes in certain dense markets and capping the data speed at 128 kilobytes per second in those cities. The plaintiff says that the noticeably slower speeds have resulted in widespread customer complaints. According to the complaint the FTC claims that AT&T Inc has throttled over 3 million unique customers since October 2011 and that AT&T’s marketing materials and employees fail to inform their unlimited data customers of the throttling program.
The plaintiff claims that after customers took AT&T to small claims court and news stories of their victories began emerging in early 2012 AT&T Inc modified its throttling practices and set a uniform nationwide data-use threshold of up to 5 gigabytes per billing cycle. The plaintiff says that although federal regulators have not yet disclosed how much they are seeking in damages from AT&T Inc, the losses caused to AT&T unlimited data plan customers are estimated between $300 million to over $1 billion.
AT&T Inc. reported that its annual Total Revenue rose from over $126.72 billion in 2011 to over $128.75 billion in 2013 and that its respective Net Income increased from over $3.94 billion to over $18.24 billion. Shares of AT&T Inc. (NYSE:T) declined from $38.59 per share in April 2013 to as low as $31.93 per share in February 2014.
On December 5, 2014, NYSE:T shares closed at $33.94 per share.
Those who are current long term investors in AT&T Inc. shares have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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