In a suit filed Wednesday in the U.S. District Court for the Southern District of New York, marketing-services provider Digital Art Services alleged that Verizon inflated its subscriber numbers in the New York region by including pending customers as subscribers, according to a report by AP. DSA claimed that it paid inflated advertising rates as a result because the rates were based on the overstated numbers.
Verizon has been aggressively rolling out its fiber-optic-network FiOS TV service to compete with cable and satellite operators. At the end of the second quarter, FiOS TV was available in more than 12 states and had 515,000 total subscribers.
DSA is based in Great River, N.Y.
Spokespersons at DSA and Verizon were unavailable for comment.