Creditors Sue Optimum Communications Over Alleged Asset Siphoning

Creditors of Optimum Communications Inc. filed a lawsuit in New York state court on September 28, 2026, against the company, its founder Patrick Drahi, and former CEO Dexter Goei. The lenders allege the defendants orchestrated fraudulent transfers to shift billions of dollars in fiber and cable assets into a sham entity to benefit insiders while the company carried a $21 billion debt load.

The lawsuit claims these value siphoning transactions lacked a legitimate business reason and were designed to prioritize equity interests over creditors. This legal action follows a separate suit previously filed by Optimum against the same creditors for alleged antitrust violations regarding debt price fixing.

Optimum has denied the allegations, asserting that its actions complied with the law and debt agreements. Similar disputes are currently unfolding with Altice International, a European telecommunications business also owned by Patrick Drahi, which is facing its own creditor disputes and default notices.