BT Group stock price slips as it faces a £600 million lawsuit for overcharging customers

Shares of BT Group (LON: BT.A) are trading about 2% lower in the past two days after the company was served a £600 million lawsuit for overcharging its landline customers. 

Fundamental analysis: Major accusations launched towards BT

The telecom giant BT Group is facing a lawsuit filed by a group of its customers accusing them of overcharging its users for landline services. This is a continuation of accusations outlined earlier when British regulator Ofcom accused telecoms of treating their landline customers poorly. 

On the other hand, BT Group said the allegations against the company are not true and it will fight back “vigorously” in court. 

If successful, BT Group would be forced to pay about £500 to each of its 2.3 million landline customers.

Technical analysis: Stock price retreats

BT Group stock price trades about 2% lower this week, just a few days after printing a 10-month high of 148p. Overall, shares are up about 4.5% in January.

The price action is now approaching a key short-term resistance line around the 155p mark, consisting of the multi-year descending trend line and the 100-DMA. 

Summary

A class-action lawsuit against BT Group has been filed for allegedly failing to compensate its customers who were previously overcharged for landline services.