Los Angeles sues Time Warner Cable for back fees

Time Warner Cable has made the news – mostly bad – for its aim to merge with Comcast. As Speed Matters reported last month, about 70 percent of Americans want regulators to stop the deal.

And if Time Warner is trying to improve its public image, it’s failing. Last week, the city of Los Angeles filed a lawsuit in U.S. District Court alleging that Time Warner Cable, Inc. skipped out on some $10 million in unpaid fees. The suit claims that Time Warner collects a half billion a year from residents and failed to pay franchise fees for using city-owned rights of way.

According to City Attorney Michael Feuer, talking to Time Warner hasn’t helped. Feuer told The Los Angeles Times, “The negotiations haven't been fruitful and we have to do something about that. said. Time Warner pocketed the money from its subscribers and then did not turn it over to the city of Los Angeles.”

Time Warner denies it owes the money and says the lawsuit is “without merit.”

The company was already in low standing with Angelenos, following a recent substantial rate increase, and “...efforts to extract hefty fees from rivals to air the L.A. Dodgers channel.”

At a City Hall news conference, Feuer said, “This is a day where we are standing up and saying enough is enough.”

Comcast-Time Warner deal provoking strong reaction (Speed Matters, Feb. 18, 2014)

L.A. sues Time Warner Cable over past fees (LA Times, Mar. 15, 2014)