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Los Angeles sues Time Warner Cable Inc. over unpaid past fees

By Rebekah Penner ,

The city of Los Angeles will not settle.

Friday, the city sued the cable company Time Warner Cable Inc., claiming the franchise owes them almost $10 million in unpaid franchise fees.

"Time Warner owes L.A.'s taxpayers millions of dollars for the privilege of having its franchise," said Michael Feuer, the city attorney, in a city hall news conference following the announcement of the lawsuit, reported the Los Angeles Times.

The lawsuit claims that while Time Warner Cable collected more than $500 million a year from its customers, they neglected to pay their obligations to the city to operate the network. The city claims Time Warner did not pay from 2008 through 2011, according to the L.A. Daily News.

However, in a statement, the cable network company denied the charges claiming they had not paid the city.

This news comes after the announcement made by Time Warner Inc. that it will be increasing customer rates by about 6 percent a month for everyone not covered in the promotional package. The company currently has about 1.5 million customers and the hike in prices will affect about 30 percent of these people.

image: Wikimedia Commons

 

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