Market Insider

CenturyLink shares drop 7% after reports of an alleged billing scam

Key Points
  • Bloomberg published a report on a former employee, who claims she got fired after bringing attention to allegedly fraudulent billings.
  • Shares of CenturyLink sank 7 percent.
Centurylink CEO Glen Post.
Source: YouTube

Shares of CenturyLink fell close to 7 percent on Friday afternoon after Bloomberg published a story on a former employee, who claims she was fired after bringing attention to allegedly fraudulent billings.

According to the report, plaintiff Heidi Heiser filed a lawsuit in Arizona state Superior Court claiming that she was fired after alerting CenturyLink CEO Glen Post to the scheme.

The complaint details that Heiser became concerned about company practices after news broke about Wells Fargo employees opening deposit and credit card accounts without customer consent in order to meet sales goals.

Heiser estimated that alleged unauthorized fees by people "who had a personal incentive to add services or lines to customer accounts" amounted to "many millions" of dollars.

"Should an employee have any concerns about ethics or compliance issues, we have an Integrity Line in place, 24 hours a day, seven days a week," said a CenturyLink spokesman in a statement to CNBC. "This employee did not make a report to the Integrity Line and our leadership team was not aware of this matter until the lawsuit was filed. We take these allegations seriously and are diligently investigating this matter."

CenturyLink, a nationwide communications and data services provider, is currently in the middle of a $34 billion merger with Level 3 Communications, a telecommunications and internet service provider.

The company's stock ended down 4.6 percent Friday. The shares are up more than 5 percent year to date.

Click here to read the full story from Bloomberg.