News Corp to settle in-store promotions litigation for $280 million
By Nate Raymond
NEW YORK (Reuters) - News Corp said on Monday that it had agreed to pay $280 million to resolve claims that it monopolized the market for in-store promotions at more than 50,000 retail stores across the United States.
The settlement with Rupert Murdoch's company abruptly ended a trial that had begun earlier in the day, when jurors in Manhattan federal court heard opening arguments in what had been a $2 billion lawsuit.
News Corp said that while it "had full confidence in our case, we believe this decision is in the best interests of our company and stockholders."
As part of the settlement with the plaintiffs, who consist of consumer packaged goods companies including Dial Corp and Kraft Heinz Co, News Corp said it will pay $250 million to settle the case and another $30 million to resolve related claims.
The plaintiffs had been seeking $674.6 million, a sum that could have been tripled to more than $2 billion under federal antitrust law.
News Corp was accused of monopolizing the U.S. market for in-store promotion services, where it acts as a middleman to help companies promote goods through coupon dispensers, electronic signs, end-of-aisle displays and shopping cart ads.
The plaintiffs said News Corp's News America Marketing division had dominated this market since 2004 by locking up exclusive long-term contracts with retailers, and by 2009 commanded a 90.5 percent market share.
In 2014, News Corp's last rival, Valassis Communications Inc [VCII.UL], abandoned the business, according to court papers. Continued...