Suing Paul Allen & Charter for securities fraud

Charter Communications shareholder Herb Lair is suing Microsoft co-founder Paul Allen for securities fraud. Here, he explains why.”

Many thought he (Paul Allen) paid too much for [local cable] systems that he bought around 1999 and thereafter. However, the [local cable] systems he bought were around $4,000 a subscriber. That amount was comparable to what Cox paid for the TCA systems in Arkansas, including Harrison and Rogers. Also comparable to what Comcast, Time Warner, and Mediacom paid. They all have made their purchases successful.

Paul Allen made several mistakes in the management of the [local cable] systems and started growing debt at a high rate. Mistakes included his choice of managers, capital expenditures (cap-ex), marketing, and debt management. He attempted to run the business as an absentee owner.

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