IN THE UNITED STATES DISTRICT COURT FOR THE …

Case: 1:18-cv-04249 Document #: 1 Filed: 06/19/18 Page 1 of 16 PageID #:1

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

ELIZABETH O'NEIL, individually and on )

behalf of all others similarly situated,

)

)

Plaintiff,

)

)

v.

)

)

COMCAST CORPORATION and

)

COMCAST CABLE

)

COMMUNICATIONS, LLC,

)

d/b/a XFINITY MOBILE,

)

)

Defendants.

)

Case No.: JURY TRIAL DEMANDED

CLASS ACTION COMPLAINT

Plaintiff, Elizabeth O'Neil ("Plaintiff" or "O'Neil"), individually and on behalf of all others

similarly situated, through her undersigned counsel, alleges for her Class Action Complaint against

Defendants, Comcast Corporation and Comcast Cable Communications, LLC, d/b/a XFINITY

Mobile (collectively, "Defendants" or "Comcast"), based upon personal knowledge as to herself

and her own acts and experiences, and, as to all other matters, upon information and belief,

including the investigation conducted by her counsel, as follows:

NATURE OF THE ACTION

1. This action arises from Defendants' unlawful practice of opening XFINITY Mobile

accounts for their cable and internet customers without such customers' knowledge or consent and

for failing to safeguard its customers' personal information.

2. In an apparent effort to grow its fledgling mobile business segment, Comcast

leveraged the personal account information of its existing cable and internet customers to allow

the opening of XFINITY Mobile accounts through its online customer portal.

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3. While Comcast customers are able to establish XFINITY Mobile service with a few mouse clicks, it has also caused damage to its existing cable and internet customers whose accounts have been accessed without their authorization for the purpose of unlawfully obtaining valuable merchandise in the form of new cell phones.

4. Unauthorized users infiltrated Comcast's XFINITY Mobile accounts, enabling them to purchase cell phones through the website using already established personal account information from customers' cable and internet accounts.

5. Furthermore, Defendants failed to inform its customers in a timely manner when their personal information was accessed or compromised as a result of Defendants' practices, in breach of its statutory duties to do so, thus causing its customers additional harm.

6. The above-described practices, alleged in further detail below, give rise to Plaintiff's and the putative class' claims for violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1, et seq. (Count I), breach of implied contract (Count II), and unjust enrichment (Count III).

JURISDICTION AND VENUE 7. This Court has subject matter jurisdiction pursuant to 28 U.S.C. ? 1331(d)(2), as this is a class action in which the matter in controversy exceeds the sum or value of $5,000,000, exclusive of interests and costs, and is a class action in which members of the class, which number in excess of 100, are citizens of states different from Defendants. 8. Personal jurisdiction over Defendants is proper under 735 ILCS 5/2-209(b)(4) (corporation doing business within this State), and Section 2-209(c) (any other basis now or hereafter permitted by the Illinois Constitution and the Constitution of the United States). 735 ILCS 5/2-209(b)(4), and (c).

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9. Venue is proper in this district pursuant to 28 U.S.C. ? 1391(a) because a substantial part of the events giving rise to the claim occurred in this district.

PARTIES 10. Plaintiff, Elizabeth O'Neil, is a natural person domiciled in Palatine, Illinois. Plaintiff is a member of the putative class defined herein. 11. Defendant Comcast Corporation ("Comcast Corp.") is a corporation incorporated under the laws of the Commonwealth of Pennsylvania with its principal place of business in Philadelphia, Pennsylvania. Comcast Corp. is a global media and technology company with two primary businesses, defendant Comcast Cable and NBCUniversal, LLC, a non-party. 12. Defendant Comcast Cable Communications, LLC, d/b/a XFINITY Mobile ("Comcast Cable") is a limited liability company formed under the laws of the State of Delaware with its principal place of business in Philadelphia, Pennsylvania. Comcast Cable is one of the nation's largest providers of video, high-speed Internet and voice services to residential customers under the XFINITY brand, including its XFINITY Mobile service that is the subject of this action. Comcast Cable is a wholly-owned subsidiary of defendant Comcast Corp.

BACKGROUND Comcast XFINITY Mobile

13. Comcast is the largest cable television and home internet service provider in the United States and is the third largest home telephone service provider. It serves residential and commercial customers in forty states and the District of Columbia.

14. Comcast Cable generates revenue primarily from subscriptions to its video, highspeed Internet and voice services ("cable services"), and from the sale of advertising.

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15. Xfinity is a brand of Comcast Cable Communications, LLC, a subsidiary of the Comcast Corporation, used to market consumer cable television, internet, telephone, and wireless services provided by the company. The brand was first introduced in 2010. Prior to that, these services were marketed primarily under the Comcast name.

16. On April 6, 2017, Comcast announced a wireless service branded as XFINITY Mobile available exclusively to Comcast subscribers. XFINITY Mobile uses Comcast's mobile virtual network operator ("MVNO") rights to provide the service over Verizon's wireless network and Comcast's existing network of in-home and outdoor Wi-Fi hotspots.

17. During an earnings call on October 26, 2017, Comcast's Chairman and Chief Executive Officer, Brian L. Roberts, boasted to investors about Xfinity's explosive growth to more than 250,000 subscribers in just a few months by "bundling access to the best high-speed Internet data with a unique wireless offering." See (visited June 19, 2018, as were the other webpages cited herein). Mr. Roberts did not mention the widespread reports of fraudulent orders for new service or phones alleged herein.

18. To increase subscribers and to better compete with the likes of giants AT&T and Verizon, Comcast has been working to flesh out its XFINITY Mobile service. Furthermore, during an earnings call on January 18, 2018, Comcast's Senior EVP & CFO emphasized to investors that "XFINITY Mobile is a big opportunity to continue to drive the bundling strategy of the cable business." See .

19. By the end of 2017, Comcast's XFINITY Mobile counted 380,000 customer lines.

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Case: 1:18-cv-04249 Document #: 1 Filed: 06/19/18 Page 5 of 16 PageID #:5

Identity Theft 20. The United States Government Accountability Office noted in a June 2007 report

on Data Breaches ("GAO Report") that identity thieves use personal identifying data to open financial accounts, receive government benefits and incur charges and credit in a person's name.1

21. According to the Federal Trade Commission ("FTC"), identity theft victims must take numerous time-consuming and expensive steps in order to repair the impact to their good name and credit record.2

22. Comcast enabled unauthorized users to make numerous purchases of cell phones using customers' existing cable and internet account information.

23. Comcast customers are subject to continuing damage from having their personal information compromised. Comcast failed to take reasonable steps to notify its customers that their information was compromised. Cell Phone Fraud

24. The nature of identity theft is changing as cellular fraud emerges as a growing problem.

25. Cellular fraud is defined as the unauthorized use, tampering or manipulation of a cellular phone or service. One of the main types is known as subscriber fraud, which is illegal under the Wireless Telephone Protection Act.

26. Subscriber fraud occurs when someone signs up for service with fraudulently obtained customer information or false identification. Lawbreakers obtain the personal information and use it to set up a cell phone account in that customer's name.

1 See . 2 See FTC's Consumer Information Website: .

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