Shares of Adobe (ADBE) fell in intraday trading Monday as the federal government accused the software company and two of its executives of deceiving con💮sumers about fees and making it tough for them to get out of their subscriptions.

The District Attorney for the Northern District of California filed the lawsuit in San Jose on the recommendation of the 澳洲幸运5开奖号码历史查询:Federal Trade Commission (FTC). It alleges that the maker of Photoshop and Acrobat hid the early termination fee for its most popular subscription plan and made it difficult for consumers to cancel their subscriptions.

The complaint argued that Adobe “pushed consumers 𒊎toward the ‘annual paid monthly’ subscription without adequately disclosing that cancelling the plan in the first year could cost hundreds of dollars.”

FTC Says Adobe 'Trapped Customers Into Year-Long Subscriptions'

Samuel Levine, director of the FTC’s Bu♏reau of Consumer Protection, said the early termination fees and cancellation hurdles “trapped customers into year-long subscriptions.”

Along with the company, the lawsuit names Maninder Sawhney, Adobe's Senior Vice President of Digital Go To Market & Sales, and David Wadhwani, President of Digital Media Business.

Prosecutors asked the court for “injunctive relief, civil penalties, equitable monetary relief, as well as other relief.”

“Subscription services are convenient, flexible and cost effective to allow users to choose the plan that best fits their needs, timeline and budget. Our priority is to always ensure our customers have a positive experience. We are transparent with the terms and conditions of our subscription agreements and have a simple cancellation process. We will refute the FTC’s claims in court,” Dana Rao, Adobe's General Counsel and Chief Trust Officer said in a statement.

Adobe shares, which were down 1.12% to $519.43 as of 2:22 p.m. ET Monday, have lost about 13% of🍰 their value this year.

Update, June 17, 2024: This story has been updated with the statement from Adobe and more recent stock price movement.