The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically,the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) AT&T’s Registration Statement touted false and misleading financial results, trends, and metrics and omitted material facts rendering those financial results, trends, and metrics materially misleading. Principally, the Registration Statement 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 experiencing an ongoing trend of total video subscriber “Net Additions.”; (ii) The Registration Statement also purported to warn of numerous risks that “if” occurring “may” or “could” adversely affect the Company while failing to disclose that these “risks” had already materialized at the time of the Acquisition; (III) AT&T had substantially increased prices, while at the same time discontinuing promotional discounts for its DirecTV Now service.
On June 24, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended consolidated Complaint on September 17. Defendants filed a Motion to Dismiss the amended consolidated Complaint on November 18. On August 18, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.