Cablevision, Time Warner Cable face class-action lawsuits
Two Cablevision (NYSE: CVC) subscribers filed a lawsuit against the company this week that complains about its policy of not automatically crediting all subscribers who lost service as a result of Hurricane Sandy. And Time Warner Cable (NYSE: TWC) was hit with a lawsuit from subscribers who are fighting its $3.95 monthly modem rental fees.
Cablevision has been asking subscribers in New Jersey, New York and Connecticut that lost service because of power outages and network damage from Hurricane Sandy to call its customer service representatives to request credits for days that they couldn't access its Optimum products. But Long Island subscribers Irwin Bard and his son Jeffery Bard argue in their lawsuit that Cablevision should credit all subscribers who lost service for more than 24 hours. The Bards are seeking class-action status and $250 million in damages.
Cablevision said in a statement that the lawsuit "misstates the facts and is without merit."
The Cablevision complaints were filed on Tuesday, the same day that two Time Warner Cable subscribers filed lawsuits aimed at stopping the company from collecting $3.95 monthly fees from subscribers to lease its cable modems. The MSO announced the modem fees in October, but also said it would allow subscribers to avoid paying the fees if they choose to buy their own modem at retail outlets.
"It's a massive hi-tech consumer fraud accomplished by low-tech methods," Steven Wittels, an attorney for the plaintiffs, said in a statement. Officials at Time Warner Cable declined to comment on the suit.
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