Court Rules Against Nexstar, Griffin Communications on Ad-Pacing Evidence
Nexstar must produce documents connected with DOJ’s investigations into broadcaster price collusion and the failed Sinclair/Tribune deal, ruled U.S. District Court for Northern Illinois in Chicago Judge Virginia Kendall last week. In a related but separate order, she said Griffin…
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Communications will be penalized for allowing evidence connected to those matters to be deleted. The rulings are the latest in a long-running antitrust lawsuit brought against numerous broadcasters by advertisers, all stemming from the 2018 DOJ investigation of broadcasters exchanging advertising pacing data that arose from federal inquiries into Sinclair's failed buy of Tribune. Kendall’s ruling compels Nexstar to produce any white papers it or its subsidiaries submitted to DOJ for the pacing and acquisition investigations. Nexstar had asked the court to deny motions to compel such evidence as untimely and outside an agreement between Nexstar and the plaintiffs (see 2306070044, but Kendall ruled Nexstar’s answers to evidence requests was “evasive.” Nexstar “continues to avoid stating outright whether any of its entities submitted whitepapers to the DOJ in connection with the Merger Investigation,” wrote Kendall. “Considering Plaintiffs’ multiple queries about this discoverable information, Nexstar Group has failed to sufficiently respond and must do so now.” Kendall also ruled Griffin Communications was responsible for evidence “spoliation” because Griffin President Rob Krier deleted numerous text messages for years after DOJ notified the company it was under investigation and records must be preserved. Testimony from Krier and other Griffin employees “suggests negligence (perhaps even gross negligence) rather than intent to conceal adverse information,” the judge wrote. “By all accounts, Krier was simply inept at technology.” The judge also blasted the inadequacy of Griffin’s IT department and a lack of attorney oversight. “Griffin is a sophisticated enough corporate entity that the lack of documented attorney involvement in and oversight of a significant litigation hold is baffling,” Griffin must pay up to one third of the fees associated with the plaintiff's motion calling for sanctions against Griffin, Kendall ruled.