City of L.A. Sues Time Warner Cable for Millions

Mar 14, 2014  •  Post A Comment

They say you can’t fight City Hall, but what about when City Hall lands the first blow? The City of Los Angeles has done just that, filing a nearly $10 million lawsuit against Time Warner Cable, Deadline.com reports.

The suit accuses TWC of refusing to pay fees it has allegedly owed the city since 2011 — and at the same time taking in billions of dollars in revenue, the piece reports.

In a press conference today, L.A. City Attorney Mike Feuer said ”Time Warner pocketed the money from its subscribers and didn’t turn it over to the City of L.A. That money would have funded 100 police officers and miles of sidewalk repair."

The report adds: "The city is demanding Time Warner Cable pay up on $9,697,896 owed — $2,512,490 in 2008 and 2009 franchise and Public, Educational, Government use (PEG) fees, plus $7,185,406 in 2010 and 2011 franchise and PEG fees. Feuer added that the suit, filed this morning in federal court, has nothing to do with flailing carriage negotiations for TWC’s newly launched Dodgers cable network and how millions in LA will not be able to watch the team unless they are TWC subscribers."

Time Warner Cable released a response to the lawsuit, saying: “As a major job creator, tax contributor and service provider in the City of Los Angeles, Time Warner Cable is an active and responsible corporate citizen in the City of Los Angeles. We are disappointed the City has chosen to bring this action, which we strongly believe is without merit. It will now be resolved through the legal process.”

The story notes: "The news comes as TWC navigates the regulatory waters associated with its proposed mega-merger with Comcast, which is acquiring it for $42.5 billion. That deal was announced last month."

mike feuer.pngMike Feuer

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