We’ve all heard about a CenturyLink Class Action Lawsuit. You may have even experienced an internet blackout when you were surfing. This company is one of the leading companies in the said industry and is often mentioned in the same breath as Verizon or AT& T. However, these are just the companies behind what’s been called the biggest class-action lawsuit filed in recent history. This particular case is filed against CenturyLink. But why is there a need for such an article?
Simply put, there are many questionable practices made by CenturyLink that would put any investment option on the line.
As of late, it has been revealed that CenturyLink engages in practices that are akin to pyramid schemes in which those selling their subscriptions make a great deal of money while most of the individuals signing up do not receive any profit at all. However, other than the scheme mentioned above, CenturyLink is also known to place ads on various websites, particularly social networking ones, which further entice clients to purchase their products. Some of these ads are misleading at best while others are outright promotional campaigns.
There is yet another class-action lawsuit currently pending involving CenturyLink.
This time, the lawsuit is being filed by a group of CenturyLink shareholders who are alleged to have been unfairly punished for requesting more information about the company. As with the class action lawsuit mentioned above, CenturyLink is alleged to have engaged in similar practices by distributing press releases about their products without disclosing any material information regarding them. In addition, they have been found to have sent spam emails to customers who inquired about the company to generate sales leads.
The case in question pertains to a former employee who was let go from CenturyLink.
In the termination process, the employee was informed that he would no longer be working with the company and that his position was being eliminated. He was never explained this. Shortly thereafter, he went back to the business and started selling products. Subsequently, he became aware of what had happened and began filing the Class Action lawsuit against CenturyLink, claiming that he was wrongfully terminated due to his attempts to seek information regarding CenturyLink’s sales practices.
At present, it has been determined that the complaint is likely to be submitted on behalf of the Class in the present lawsuit.
CenturyLink responded with a Class Action Lawsuit in the Eastern District of Texas. The complaint was filed on behalf of all persons who have been affected by CenturyLink’s poor sales practices. A motion for class mediation was later filed. This motion is currently on track to be submitted on or before July 10th, which is the court’s deadline.
At present, it has been determined that the complaint has substantial grounds.
On a call for a conference call with legal counsel, CenturyLink’s counsel disclosed that the company is in the midst of a large-scale review of its sales practices. During the call, it was explained that they had retained a law firm in the state of Texas to assist them with the ongoing compliance issues with one of their many franchisees. On the call, the law firm disclosed that the preliminary results of the review are that CenturyLink’s sales practices involving the sales of its securities resulted in 4.5 million dollars in liability. In the second quarter of 2021, it was reported that CenturyLink is in the process of calculating its potential liability of over a few billion dollars.
A Class Action Lawsuit further alleges that CenturyLink fraudulently induced the lay-off of approximately eight hundred employees during the first quarter of the calendar year 2021.
Approximately two hundred of these laid-off employees were re-trained under new billing practices at the same time that they were receiving buy-in from the retail sales employees at the same time. Subsequently, the majority of the remaining employees received instruction on new billing practices at the same time that they were receiving buy-in from the retail sales employees at that time. As a result of this, these employees filed a complaint against CenturyLink claiming they have suffered economic losses as a result of the company’s breach of fiduciary duties and fraud as a result of their employment relationship with CenturyLink.
According to the complaint, a former employee of CenturyLink advised the company’s legal counsel of the illegal practices described above.
The former employee also advised the law firm of the fact that CenturyLink regularly engages in practices such as engaging in price-fixing about its products, maintaining an inadequate supply of servers to support its growing user base, and failing to promptly investigate and eliminate problematic issues that users may have raised concerning their accounts. As a result of this advice, the lawsuit contends that CenturyLink engages in a pattern of unlawful behavior. In addition, the complaint maintains that through its conduct and failure to remedy illegal conduct and its improper marketing and sales practices, CenturyLink has placed its customers in harm’s way. Finally, the complaint asserts that despite its knowledge of these problems and its obligations to its customers and sellers under the Business Ownership and Liability Act, CenturyLink has continued to engage in its unfair conduct.
