Spectrum Lawsuit Settlement, Are You Owed Part of the $193M Payout? 700,000+ Already Paid, Check Your Eligibility
What Are the Spectrum Lawsuit Settlements?
Charter Communications (Spectrum) faces multiple consumer protection settlements totaling over $193 million. The New York settlement of $174.2 million includes $62.5 million in direct refunds to over 700,000 subscribers, while California consumers received $16.9 million covering more than 170,000 customers. A new 2025 lawsuit challenges the $28 monthly Broadcast TV Surcharge fee, currently in arbitration with status updates due December 1, 2025.
These settlements stem from allegations Spectrum failed to deliver promised internet speeds and misrepresented fees. Understanding which settlement applies to you depends on your location, subscription dates, and specific services purchased.
New York Settlement: $174.2 Million Consumer Fraud Case
Settlement Amount and Distribution
Attorney General Barbara Underwood announced the record $174.2 million settlement in December 2018. The breakdown includes $62.5 million in direct customer refunds plus streaming services valued at over $100 million.
Over 700,000 active subscribers received between $75 and $150 each. Customers who leased outdated equipment for 24 months or longer qualified for $150 refunds, while others received $75.
Who Qualified for New York Refunds
Eligible customers were current internet service subscribers who leased a DOCSIS 2.0 modem on a tier of 20 Mbps or higher or an 802.11n wireless router on a tier of 200 Mbps or higher.
Three categories determined eligibility:
- Leasing inadequate DOCSIS 2.0 modems
- Leasing inadequate 802.11n WiFi routers
- Subscribing to Time Warner Cable legacy speed plans of 100 Mbps or higher
Customers already receiving refunds for slow equipment under earlier deals did not qualify for additional payments.
Streaming Services Provided
Approximately 2.2 million current internet subscribers received streaming services at no extra charge.
Cable and internet subscribers received choice of three months of HBO or six months of Showtime. This benefit excluded customers already subscribing to both premium channels through Spectrum.
Internet-only subscribers received one month of Spectrum TV Choice streaming service plus one month of Showtime. Spectrum TV Choice allows subscribers to access broadcast television and a choice of 10 pay TV networks depending on location.
Claims and Distribution Process
Subscribers did not have to fill out paperwork to obtain credits, but had to contact Spectrum to receive streaming services. Spectrum automatically issued bill credits to eligible customers.
Consumers had until May 30, 2019 to select the no extra charge premium services. Credits began appearing on customer bills in March 2019.
Legal Basis for New York Settlement
The 2017 lawsuit alleged Spectrum denied customers the reliable and fast internet service promised in advertising. Charter made significant investments to address problems identified in the complaint, including network enhancements, modem replacements, and upgraded WiFi routers.
The settlement established precedent-setting marketing reforms including requirements to describe internet speeds as “wired” and substantiate them through regular speed testing.
California Settlement: $18.8 Million Internet Speed Case
Settlement Structure
Spectrum agreed to pay $18.8 million to settle allegations its predecessor Time Warner Cable used misleading advertising to lure California consumers into paying for high-speed internet services the company could not deliver.
The company paid $16.9 million in restitution directly to eligible customers based on service type purchased from Time Warner Cable, plus $1.9 million to the three prosecuting agencies.
The Los Angeles District Attorney’s Office called this their largest direct restitution order ever secured in a consumer protection lawsuit.
California Compensation Amounts
Customers who paid for higher internet speeds that Time Warner’s infrastructure could not deliver received approximately $90 in one-time credit on cable/internet bills.
Consumers who both were issued outdated modems and paid for higher internet speeds qualified for approximately $180 in credit.
The settlement required Spectrum to automatically issue credits to all eligible consumers within 60 days.
Additional California Benefits
Cable TV subscribers received three free months of Showtime if they did not already subscribe, valued at $45.
Internet-only customers received one free month of Spectrum Choice entertainment streaming package, valued at approximately $40.
California Eligibility Requirements
The agreement covered more than 170,000 California consumers who did not get the internet speeds they paid for. The lawsuit targeted Time Warner Cable practices beginning in 2013.
Some customers were issued outdated modems, making it impossible for them to receive the higher bandwidth they purchased, while others paid for higher internet speeds that Time Warner’s infrastructure could not deliver.
California Settlement Terms
Time Warner Cable agreed to a prohibition on advertising internet speeds it knows or should know it cannot consistently deliver during peak hours.
The company committed to ensuring customers receive equipment capable of delivering advertised speeds. The settlement resolved investigations by Los Angeles, San Diego, and Riverside County district attorneys.
2025 Broadcast TV Surcharge Lawsuit
Current Legal Status
The Spectrum Cable class action lawsuit entered arbitration on September 3, 2025, when Judge Rebecca Grady Jennings granted an order compelling arbitration, pausing all court deadlines until at least December 1, 2025.
The case was originally filed in Kentucky circuit court before removal to federal court on July 2, 2025. The stay halts all discovery, deadlines, and proceedings in federal court until arbitration concludes or new orders are issued.
Allegations Against Spectrum
The suit challenges Spectrum’s $28-per-month Broadcast TV Surcharge, a fee added to customers’ bills to cover retransmission costs for local broadcast stations.
The complaint relays that if Spectrum’s representations were accurate that this fee is a mere pass-through cost, Spectrum would be paying local Louisville, Kentucky stations over $33 million annually in retransmission fees.
The suit alleges actual retransmission fees are far lower than $28, so the surcharge includes undisclosed profits.
Legal Framework
The complaint cites violations of Kentucky Revised Statutes 367.170, which declares unfair, false, misleading, or deceptive acts in trade or commerce unlawful.
KRS 367.220 allows consumers to recover damages for deceptive business practices. The plaintiff argues Spectrum’s surcharge constitutes both misleading representation and unconscionable conduct under Kentucky law.
Who Can Join the Kentucky Lawsuit
The Spectrum class action lawsuit looks to represent anyone in Kentucky who was charged a Broadcast TV Surcharge as part of their personal, family, or household-use Spectrum subscription within the applicable statute of limitations.
In an update, attorneys said 3,000 people had filed to join the class action suit. The case currently focuses on Kentucky residents but could expand to other jurisdictions.
The Law Office of Winton and Hiestand filed the class-action lawsuit. Plaintiff Richard Wookey, a Louisville resident and former television broadcast employee, initiated the case.
Arbitration Process and Timeline
A joint status report from both parties is due by December 1, 2025. This report will provide the next updates on settlement negotiations and case trajectory.
The arbitration stay means the federal court case will not advance unless arbitration resolves or the court issues new orders. Consumers affected by Spectrum’s billing practices should monitor developments as arbitration unfolds.
What Plaintiffs Seek
The lawsuit seeks repayment of the surcharges to affected customers, attorney fees, and an injunction to prevent Spectrum from continuing the practice.
The case could potentially affect massive numbers of customers across multiple states if successful. Over 100,000 Spectrum subscribers in the Louisville area alone are subject to the charge.
Consumer Protection Laws Governing Spectrum Settlements
Federal Communications Commission Regulations
The FCC requires cable operators to transparently disclose the total cost of programming. The Spectrum lawsuit claims the Broadcast TV Surcharge is not listed with or included in the price point that Spectrum advertises for its services, making consumers believe it is not included in the base service fee, which violates state and federal laws requiring transparent disclosure.
State Consumer Protection Statutes
New York’s consumer fraud action alleged Charter violated state consumer protection laws by denying customers promised internet speeds. This was the first settlement to result from the Attorney General’s major investigation of broadband internet service in New York.
California’s lawsuit cited unlawful business practices. The lawsuit filed in California Superior Court alleged that Time Warner Cable misrepresented internet speeds it marketed to California consumers and failed to deliver the level of service advertised.
Kentucky’s case relies on KRS 367.170 prohibiting unfair, false, misleading, or deceptive trade practices. The statute provides clear consumer protections against false or unfair billing practices.
ERISA and Additional Legal Actions
Spectrum also settled a $6 million ERISA lawsuit involving the company’s retirement plan. The case claimed Defendants violated fiduciary duties in connection with selection and monitoring of the Plan’s investment options and service providers.
How Spectrum Settlements Compare to Industry Standards
Largest ISP Consumer Payout in U.S. History
The $62.5 million in direct refunds to consumers alone are believed to represent the largest-ever payout to consumers by an internet service provider in U.S. history.
The agreement settles a consumer fraud action alleging that the state’s largest ISP, which operated initially as Time Warner Cable and later under Charter’s Spectrum brand name, denied customers the reliable and fast internet service it had promised.
Setting New Industry Standards
Charter is required to implement precedent-setting marketing and business reforms, establishing a new model for the broadband industry.
These reforms include requirements to describe internet speeds as “wired,” substantiate speeds through regular testing, and discontinue any plan speeds the company cannot support.
The settlements signal increased scrutiny of internet service provider advertising and billing practices. State attorneys general and district attorneys have demonstrated willingness to pursue major consumer protection cases against telecommunications companies.
What To Do If You Believe You’re Eligible
Check Your Service History
Review your Spectrum or Time Warner Cable account history to determine whether you subscribed during relevant time periods:
- New York settlement: Customers who had service during the class period leading up to December 2018
- California settlement: Time Warner Cable customers beginning in 2013 through the 2020 settlement
- Kentucky Broadcast TV Surcharge lawsuit: Current and former subscribers charged the fee
Examine your bills for evidence of outdated equipment charges, speed tier subscriptions, or Broadcast TV Surcharges.
Documentation to Gather
Keep detailed records of your Spectrum service including monthly bills showing charges, equipment rental agreements, advertised speed tiers versus actual speeds received, correspondence with Spectrum about service issues, and payment records.
For the Broadcast TV Surcharge case specifically, documentation showing the $28 monthly fee and how Spectrum described the charge strengthens potential claims.
Contact Information for Settlements
New York and California settlements: These settlements have already been distributed. If you believe you qualified but did not receive payment, contact Spectrum customer service and reference the settlement agreements.
Kentucky Broadcast TV Surcharge lawsuit: Winton & Hiestand Law Group PLLC represents the class. Kentucky residents who subscribed to Spectrum Cable television service and paid the Broadcast TV Surcharge may request evaluation of potential claims.
Arbitration Clauses and Class Action Restrictions
Spectrum subscriber agreements typically include arbitration clauses preventing customers from filing lawsuits in traditional courts. However, consumers always have the option to either take Spectrum to small claims court or file a consumer arbitration claim.
Government entities that filed the New York and California cases have more legal options than individual consumers. The Kentucky case demonstrates how some consumers can challenge arbitration requirements, though the current Broadcast TV Surcharge lawsuit was moved to arbitration rather than proceeding as a traditional class action.
Recent Developments: Other Spectrum Litigation
2025 Shareholder Lawsuit
On August 14, 2025, a class action lawsuit was filed against Charter Communications by Levi & Korsinsky representing shareholders who purchased Charter stock between July 26, 2024, and July 24, 2025.
The plaintiffs claim they acquired stock at artificially inflated prices and are seeking compensation for financial losses resulting from a significant decline in the stock’s value following the termination of the Federal Communications Commission’s Affordable Connectivity Program.
Charter reported a loss of 117,000 internet customers during second quarter fiscal 2025, a steeper decline than the 66,000 customers lost in the prior quarter. Following this announcement, Charter’s stock price fell 18.5% on July 25, 2025.
Employment and Labor Cases
Spectrum faces various employment-related lawsuits including wage and hour claims, discrimination allegations, and ERISA fiduciary duty violations.
Multiple jurisdictions have seen Spectrum challenged over labor practices including meal break violations in California and time-rounding practices by subsidiaries.
Understanding Your Consumer Rights
Right to Accurate Advertising
Federal and state laws require internet service providers to accurately represent service speeds, costs, and fees. Companies cannot advertise speeds they cannot consistently deliver or hide mandatory fees in fine print.
Calling the settlement the largest consumer payout by an internet service provider, Attorney General Barbara Underwood said the deal returns tens of millions of dollars to New Yorkers who were ripped off while setting a new standard for how internet providers should fairly market their services.
Right to Equipment Capable of Advertised Speeds
Spectrum cannot charge for internet speeds its equipment cannot deliver. The company is required to ensure customers are issued equipment that can deliver advertised speeds.
If you lease a modem or router from Spectrum, the equipment must support your subscribed speed tier. Companies violate consumer protection laws by leasing outdated equipment incapable of delivering paid-for speeds.
Right to Transparent Fee Disclosure
Cable companies must transparently disclose all fees including equipment charges, broadcast retransmission fees, and other surcharges. Federal law requires cable operators to transparently disclose the total cost of programming.
Fees described as “pass-through” costs must reflect actual expenses, not undisclosed profit margins. Misrepresenting discretionary charges as government-mandated fees violates consumer protection statutes.
Comparing Settlement Compensation Methods
Automatic Bill Credits
The New York and California settlements used automatic bill credits, meaning eligible customers received refunds without filing claims. Spectrum was required to automatically issue credits to all eligible consumers within 60 days in California.
This distribution method ensures high participation rates since customers need not take action to receive compensation. However, it limits compensation to current subscribers unless settlements specifically include provisions for former customers.
Streaming Service Compensation
Both major settlements included free streaming services as additional compensation. Approximately 2.2 million current internet subscribers in New York received streaming services at no extra charge.
Streaming service compensation benefits companies by potentially retaining customers who might otherwise cancel service. The retail value of these services supplements direct refund amounts.
Potential Arbitration Awards
The Kentucky Broadcast TV Surcharge case moved to arbitration rather than traditional class action litigation. Arbitration outcomes vary significantly from class settlements.
Individual arbitration may result in higher awards per person but reaches fewer affected consumers. Class arbitration could provide compensation to all affected Kentucky subscribers if successful.
Impact on Future Spectrum Services and Pricing
Service Improvements Required
Following the Attorney General’s investigation, Charter made significant investments to address problems identified in the complaint including network enhancements, modem replacements, and upgraded WiFi routers.
The settlements forced infrastructure improvements benefiting current and future customers. Spectrum upgraded equipment and network capacity to support advertised speeds.
Marketing Practice Changes
Charter is required to implement precedent-setting marketing and business reforms including the requirement to describe internet speeds as wired and to substantiate them through regular speed testing.
The company must discontinue any plan speeds it cannot support. These requirements establish accountability for advertising claims.
Ongoing Monitoring
Settlements typically include monitoring provisions ensuring companies comply with agreed reforms. State attorneys general and district attorneys continue overseeing Spectrum’s practices.
Violations of settlement terms could trigger additional enforcement actions or penalties. Ongoing oversight serves as deterrent against future deceptive practices.
Key Takeaways for Spectrum Customers
Multiple settlements exist: Spectrum settlements include the $174.2 million New York case, $18.8 million California case, and ongoing 2025 Broadcast TV Surcharge lawsuit.
New York and California settlements concluded: These cases distributed compensation through automatic bill credits and free streaming services. Contact Spectrum if you believe you qualified but did not receive payment.
Kentucky lawsuit in arbitration: The Broadcast TV Surcharge case is stayed pending arbitration with a joint status report due December 1, 2025.
Check your bills carefully: Review statements for unexpected fees, especially the $28 Broadcast TV Surcharge. Document all charges and service issues.
Understand your subscriber agreement: Spectrum contracts typically include arbitration clauses limiting legal options. Consumer arbitration and small claims court remain available.
Settlements set industry precedents: The New York settlement established new standards for ISP marketing and advertising practices affecting the entire broadband industry.
Frequently Asked Questions
Q: Did I automatically receive the New York or California settlement?
Yes, if you qualified. New York subscribers did not have to fill out any paperwork to obtain bill credits. California credits were automatically issued within 60 days. If you believe you qualified but did not receive payment, contact Spectrum customer service.
Q: How much compensation did eligible customers receive?
New York customers received $75 to $150 in direct refunds plus free streaming services. California customers received approximately $90 in one-time credit, or approximately $180 if they both were issued outdated modems and paid for higher internet speeds.
Q: Can I still join the Broadcast TV Surcharge lawsuit?
The class action is currently limited to Kentucky residents who subscribed to Spectrum Cable television service. The case is in arbitration with updates due December 1, 2025. Contact Winton & Hiestand Law Group for evaluation of potential claims.
Q: What if I had Spectrum service but didn’t receive any settlement payment?
Review whether you had service during the relevant time periods and met specific eligibility criteria. The New York settlement required leasing specific outdated equipment or subscribing to legacy speed plans. California required Time Warner Cable service with documented speed delivery failures.
Q: Does Spectrum’s arbitration clause prevent me from joining class actions?
Spectrum subscriber agreements often include language preventing customers from filing lawsuits in most types of legal courts, though consumers always have the option to either take Spectrum to small claims court or file a consumer arbitration claim. Government-filed cases like New York and California are not bound by consumer arbitration agreements.
Q: How do I know if I’m being charged the Broadcast TV Surcharge?
The suit challenges Spectrum’s $28-per-month Broadcast TV Surcharge, a fee added to customers’ bills to cover retransmission costs for local broadcast stations. Check your monthly bill for a line item labeled “Broadcast TV Surcharge” or similar language.
Q: What should I do if I believe Spectrum is not delivering promised internet speeds?
Document actual speeds through regular testing using tools like Speedtest.net. Keep records of advertised speed tiers versus actual performance. File complaints with your state attorney general, the FCC, and consumer protection agencies. Consider consumer arbitration for individual claims.
Legal Disclaimer: This article provides general information about Spectrum lawsuit settlements and should not be construed as legal advice. Settlement terms, eligibility criteria, and legal options vary by jurisdiction and specific circumstances. Past settlements do not guarantee future results. If you believe you have claims against Spectrum, consult an experienced consumer protection attorney in your jurisdiction for guidance on your specific situation and rights.
Sources:
- New York Attorney General Press Releases (December 2018, March 2019)
- Los Angeles County District Attorney Settlement Announcements (February 2020)
- Kentucky Federal Court Filings (2025)
- Verified news sources and legal publications cited throughout
- Official settlement administrator communications
- Consumer Reports and legal news databases
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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