Pomerantz LLP is investigating claims on behalf of investors of AT&T Inc. (“AT&T” or the “Company”) (NYSE: T). Such investors are advised to contact Robert S. Willoughby at email@example.com or 888-476-6529, ext. 9980.
The investigation concerns whether AT&T and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
In June 2018, in connection with its acquisition of Time Warner Inc. (“Time Warner”), AT&T issued approximately 1.185 billion new shares of AT&T common stock directly to former shareholders of Time Warner common stock, with each former share of Time Warner common stock issued and outstanding immediately before the acquisition converted into the right to receive 1.437 shares of newly issued AT&T common stock. The Registration Statement issued in connection with the stock issuance 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 purportedly experiencing an ongoing trend of total video subscriber “Net Additions.” It subsequently became clear that AT&T had substantially increased prices while discontinuing promotional discounts for its DirecTV Now service and was consequently losing subscribers. Since the Time Warner acquisition, AT&T’s stock price has fallen as low as $27.36 per share, a decline of nearly 16% from the $32.52 price per share on the exchange date for the acquisition.