Charter Settles Suit With NY, Will Pay $174.2 Million Settlement
NEW YORK (CBSNewYork) - New York state has reached a $174.2 million settlement with Charter Communications stemming from the civil suit accusing the telcom of defrauding customers by delivering slower-than-promised internet speeds.
The company will repay $62.5 million to more than 700,000 current customers, which works out to between $75 to $150 each.
Charter will also provide $2.2 million New York state subscribers more than $100 million worth of streaming services and premium channels free of charge.
The lawsuit began in 2017 when Charter's subsidiary, Spectrum, was previously known as Time Warner Cable.
"This settlement should serve as a wake-up call to any company serving New York consumers: fulfill your promises, or pay the price," said Attorney General Barbara D. Underwood. "Not only is this the largest-ever consumer payout by an internet service provider, returning tens of millions of dollars to New Yorkers who were ripped off and providing additional streaming and premium channels as restitution – but it also sets a new standard for how internet providers should fairly market their services."
