Charter Communications (NASDAQ:CHTR) will be paying a record $174.2 million as part of a settlement deal with New York Attorney General Barbara Underwood for delivering lower- than-promised Internet speed to customers.
Notably, Charter is the first Internet service provider in the United States to pay the largest ever settlement amount to consumers.
The state’s largest Internet service provider, Spectrum — re-branded after Charter acquired Time Warner Cable in 2016 — failed to provide the promised Internet speed. Underwood has asked Charter to update its marketing practices to be in tandem with the service provided.
As part of the settlement, the company will be paying $62.5 million directly to customers. More than 700,000 active subscribers in the city will receive $75 to $150 each based on their plans. Additionally, Charter agreed to provide $110 million worth of free streaming services and premium channels to about 2.2 million active customers.
Charter Communications, Inc. Revenue (TTM)
Netflix, Inc. (NFLX): Free Stock Analysis Report
Charter Communications, Inc. (CHTR): Free Stock Analysis Report
Cinemark Holdings Inc (CNK): Free Stock Analysis Report
Crocs, Inc. (CROX): Free Stock Analysis Report
Original post
Zacks Investment Research