News Corp settles case with Valassis Communications for $500 million
01 Feb 2010
Media baron Rupert Murdoch's News Corporation (News Corp) has resolved a long-standing dispute with Valassis Communications Inc (Valassis), a marketing services firm by agreeing to pay $500 million as compensation.
Valassis had filed a lawsuit against News America Marketing, the marketing arm of News Corp, over its use of power and unfair competition practices to win over its rivals, which News Corp denied.
In June 2009, a Michigan jury ordered News Corp to pay $300 million to Valassis in related proceedings. Another similar case has been pending in a California court as well, which was scheduled to begin this week.
The world's second-largest media conglomerate after Walt Disney, and the owner of 20th Century Fox, Fox Broadcasting Company and The Wall Street Journal said Saturday that the $500 million payment covers last year's $300 million and the pending cases.
As part of the settlement, News America Marketing would also enter into a 10-year shared mail distribution agreement with Valassis.
News Corp deputy chairman, president and chief operating officer, Chase Carey said in a statement, ''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.''
