New York Attorney General Eric Schneiderman [official website] filed a lawsuit [complaint, PDF; press release] Wednesday against Charter Communications Inc.‘s [corporate website] subsidiary Spectrum for allegedly failing to deliver promised Internet speeds to customers. The lawsuit, filed in State Supreme Court in Manhattan, claims that Spectrum promised speeds and online content that it knew could not be delivered. Netflix, Facebook and various gaming platforms were among the online content that could not be accessed due to lagging Internet speeds. The lawsuit seeks compensation for the 2.5 million New York subscribers who overpaid for services they did not receive. Schneiderman plans to hold a press conference Wednesday to explain the details of the lawsuit.
In May of last year, Charter Communications, Inc. entered into a $65 billion merger with Time Warner Cable [corporate website] and Bright House. After the merger, Charter rebranded their cable and television services as Spectrum. Charter said that the lawsuit brought against them on Wednesday is about [CNNMoney report] ads that Time Warner aired before the merger. Charter’s CEO said [CNN report] that one of the major “initiatives of the rebranding and merger was to streamline product pricing and packaging.” A spokeswoman for Schneiderman said that Charter did not deal with the underlying problems that Time Warner had and as a result customers are experiencing “slower speeds when they’re paying for more.”