A class action lawsuit filed in 2021 alleges Charter Communications, Inc. (Spectrum’s parent company), misled investors about retaining Disney channels, causing a stock price decline and potential securities law violations.
Timeline:
- October 2018: Charter and Disney carriage agreement expires, leading to a blackout.
- August 2021: Class action lawsuit filed against Charter.
- Current: Discovery phase ongoing, trial scheduled for 2024.
Allegations:
- Misleading investors: Charter allegedly made confident statements about securing a new Disney deal, despite knowing it was unlikely.
- Securities law violations: Accused of failing to disclose challenges in Disney negotiations.
Damages sought:
- Compensation for investors who bought Charter securities between Jan 2017 and Nov 2018.
- Injunction to prevent similar future practices.
Potential impact:
- Millions in damages for Charter.
- Reputational damage and potential capital raising difficulties.
Additional information:
- This isn’t Charter’s first deceptive practice accusation.
- Multiple law firms represent the plaintiffs.
Latest developments (as of February 1, 2024):
- Discovery phase continues with evidence exchange and witness depositions.
- Trial date remains set for 2024.
- No major updates or settlements reported publicly.
Disclaimer: This information is for general knowledge only and does not constitute legal advice. Please consult with a legal professional for specific questions about the lawsuit.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| August 2021 | Spectrum Investors v. Charter Communications, Inc. | N/A (pending) | U.S. District Court (district to be determined) | Class action lawsuit alleging misleading investor statements and potential securities law violations related to Disney channel carriage negotiations. |
