Charter Communications Inc. has joined the growing list of companies in the telecom sector to raise the eyebrows of federal authorities since Enron Corp. collapsed and Adelphia Communications Corp. filed for bankruptcy.
The MSO has received a grand jury subpoena from the U.S. District Attorney's Office for the Eastern District of Missouri requesting documents related to its customers and accounting practices. Specifically, federal prosecutors have requested documents related to its current and disconnected customers and its procedures related to accounting for its costs.
During the first quarter, Charter disconnected 145,000 marginal customers. The company said it has tightened its collection policy and procedures related to these marginal customers.
"Charter believes the issues under investigation are similar to those raised in previously reported class actions pending against the company, and certain individual defendants, and will cooperate fully with the subpoena," Charter Senior Vice President of Communications David Andersen said in a statement.
Earlier this month, a class-action lawsuit was filed in California alleging Charter used "misleading accounting practices that had the effect of misrepresenting its results of operations."