Charter Communications refunds will be going out to customers due to the company’s slow internet.
The Charter Communications (NASDAQ:CHTR) refunds are due to a settlement in a recent lawsuit concerning the company. This lawsuit says that the internet service provider was only providing customers with internet that was slower than it promised.
According to the lawsuit, Charter Communications was providing customers with internet that was up to 80% slower than what is was promising. Internal emails used in the lawsuit also show that the company was aware its internet would be slower than its promises.
This will result in the company handing out $62.50 million in Charter Communications refunds for the slow internet. Over 700,000 customers are set to receive the refund from the internet service provider.
This settlement means that those customers will be getting Charter Communications refunds between $75 and $150. It also includes $110 million in streaming content and premium channels from some customers. However, this part of the deal is only for 2.20 million subscribers living in New York, reports New York Daily News.
“This settlement should serve as a wakeup call to any company serving New York consumers: fulfill your promises, or pay the price,” Attorney General Underwood said in a statement. “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.”
CHTR stock was down 1% as of noon Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.