Altice USA

News Summary:

Creditors, including Apollo Global Management and Oaktree Capital, filed a lawsuit earlier this week in a New York state court against Optimum, its controlling shareholder Patrick Drahi, former CEO Dexter Goei, and associated entities. The lawsuit, filed in late September, alleges "fraudulent" deal-making and a series of transactions undertaken by the debt-laden company that transferred assets away from Optimum for the benefit of its majority shareholders, siphoning value out of creditors' reach. Optimum has operated as an Altice USA brand since Altice's $17.7 billion acquisition of Cablevision in 2016, offering Internet, television, mobile, and home phone services in 21 states. Previously, on September 17, the New Jersey Board of Public Utilities approved a stipulation resolving an investigation into Altice USA's service quality. The investigation, which began in February 2021 following numerous complaints from customers and 10 municipalities regarding service disruptions and poor customer service, led Altice to commit to an $11 million investment in its New Jersey hybrid fiber optic-coaxial network in 2023. The company also agreed to meet customer service standards, including answering 90% of calls within 30 seconds, limit busy signals to 3%, and provide biannual community updates for three years. Earlier on the same day, Altice USA reported its third-quarter 2025 financial results, achieving a record gross margin performance and reaching over 700,000 fiber customers. Despite facing softer broadband subscriber trends amid intense competition, the company reaffirmed its full-year Adjusted EBITDA outlook and continued strategies to improve its broadband performance and revenue trajectory.