News Corp. in 500-million-dollar settlement with Valassis

January 30, 2010

News Corp. said Saturday it had reached a 500-million-dollar settlement over lawsuits filed by Valassis Communications Inc. against a division of Rupert Murdoch's entertainment and media giant.

"It has become evident to our legal advisors from pre-trial proceedings over the past couple of weeks that significant risks were developing in presenting this case to a jury," News Corp. chief operating officer Chase Carey said.

"That, coupled with concerns over the venue, led us to believe it was in the best interests of the company and its stockholders to agree to a ," Carey said in a statement.

A federal case filed by Valassis, a Michigan-based newspaper coupon and direct mail company, against .'s News America Marketing unit had been scheduled to open in Michigan on Tuesday.

Two other lawsuits were pending. A 300-million-dollar jury award in July by a Michigan circuit court in a related case was on appeal and another suit was pending in a state court in California.

In legal action begun in 2006, Valassis accused News America Marketing of unfair business practices and seeking to monopolize the market for in-store coupons known as free standing inserts, or FSIs.

Valassis said that under the terms of the settlement News America Marketing will pay Valassis 500 million dollars, a sum which includes the jury award, and enter into a 10-year shared mail distribution agreement.

"I am pleased that we were able to reach a mutually agreeable settlement and avoid protracted future litigation," Valassis chairman, president and chief executive Alan Schultz said in a statement.

Explore further: Video firm settles lawsuits clearing way for Google buy

Related Stories

Sprint to pay $17.5 million to settle fee suit

August 12, 2009

(AP) -- Sprint Nextel Corp. has agreed to pay $17.5 million to settle a lawsuit claiming the fees it has charged customers who end their wireless contracts early are illegal.

AP settles lawsuit with AHN Media

July 13, 2009

The US news agency the Associated Press announced Monday that it had settled an intellectual property lawsuit against AHN Media, an online company accused of misappropriating AP articles.

Recommended for you

Microsoft aims at Apple with high-end PCs, 3D software

October 26, 2016

Microsoft launched a new consumer offensive Wednesday, unveiling a high-end computer that challenges the Apple iMac along with an updated Windows operating system that showcases three-dimensional content and "mixed reality."

Making it easier to collaborate on code

October 26, 2016

Git is an open-source system with a polarizing reputation among programmers. It's a powerful tool to help developers track changes to code, but many view it as prohibitively difficult to use.


Adjust slider to filter visible comments by rank

Display comments: newest first

not rated yet Jan 30, 2010
I wish Rupert Murdoch would go back to Australia.A man driven to control and manipulate everything he touches.
not rated yet Jan 31, 2010
What does an article about News Corp. being sued over its advertising policy have to do with science news? Also, It would be great to keep a few sources of information apolitical.
not rated yet Jan 31, 2010
An editorial mistake. Rupert is large but Rupert is trivial.

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.