Valassis Gets $500 Million Settlement From News America

Posted on by Chief Marketer Staff

Valassis will settle its antitrust lawsuits against News America Marketing. Valassis had alleged News America was charging higher prices to customers who didn’t give News America exclusive marketing arrangements.

Under the terms of the settlement, News America will pay Valassis $500 million and will also enter into a 10-year shared mail distribution agreement with Valassis Direct Mail, a Valassis subsidiary.

Additionally, under the terms of the settlement, Valassis’ lawsuits pending against NAM in the United States District Court, Eastern District of Michigan, and the Supreme Court of the State of California for the County of Los Angeles were dismissed with prejudice. The settlement was reached in the United States District Court, Eastern District of Michigan.

The settlement also calls for dismissal with prejudice NAM’s defamation suit against Valassis in The Supreme Court of the State of New York.

When Valassis filed its initial suit in 2006, it claimed News America had violated the Sherman Act as well as state competitive statutes by tying purchase of its in-store promotion and advertising services to purchase of space in its free-standing inserts, according to papers filed with the Securities and Exchange Commission. The lawsuit further alleged that News America attempted to monopolize the free-standing insert market.

In July 2009, a Michigan jury awarded Valassis $300 million. That award is part of the $500 million settlement announced on Monday.

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