Newsmax put out a Sept. 3 press release announcing a lawsuit against the right-wing competition:
Newsmax Inc. (NYSE:NMAX) announced today that the Company’s subsidiary, Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC (collectively, “Fox”) in the United States District Court for the Southern District of Florida.
The suit, led by prominent antitrust litigators at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., accuses Fox of engaging in an extensive and unlawful campaign to block competition in the market for right-leaning pay television news, including Newsmax. [See Newsmax Complaint Against Fox]
Newsmax’s action seeks damages under Sections 1 and 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive & Unfair Trade Practices Act.
Under federal law, any damages awarded in this case will be trebled – meaning Fox faces significant financial liability if Newsmax prevails.
The complaint alleges that Fox has abused its dominance in the right-leaning pay TV news market for years by coercing distributors into unfair carriage agreements designed to exclude or marginalize competitors like Newsmax.
Fox News, described in the complaint as a “must-have” channel for distributors, leverages its market power to impose restrictions that harm consumers, stifle competition, and drive up costs across the pay TV ecosystem.
[…]“Fox has sought to protect and expand its monopoly power in the right-leaning pay TV news market by engaging in a suite of anticompetitive behaviors,” the complaint states, adding Fox’s unlawful and exclusionary conduct “has harmed not just Newsmax and other competitors,” but also “consumers and competition itself.”
Newsmax probably didn’t intend to admit that both it and Fox News are highly biased, but that’s the impression this lawsuit gives. Still, there was a statement from the head of Newsmax as well:
“Fox may have profited from exclusionary contracts and intimidation tactics for years, but those days are over,” Christopher Ruddy, Newsmax CEO, said.
“This lawsuit is about restoring fairness to the market and ensuring that Americans have real choice in the news they watch. If we prevail, Fox’s damages could be tripled under federal law – an outcome that would send a powerful message to any company that thinks it can monopolize public discourse.”
Two days later, however, a judge threw out the lawsuit, calling it a “shotgun complaint,” adding that “The court has an independent obligation to dismiss such pleadings and require repleader,” meaning that Newsmax could refile the lawsuit.
And that’s what Newsmax did. A Sept. 14 press release announced it had been refiled in Wisconsin for some reason:
Newsmax Inc. (NYSE:NMAX)announced today that the Company’s subsidiary, Newsmax Broadcasting, LLC, has filed a major federal antitrust lawsuit against Fox Corporation and Fox News Network, LLC (collectively, “Fox”) in the United States District Court for the Southern District of Florida.
The suit, led by prominent antitrust litigators at Kellogg, Hansen, Todd, Figel & Frederick, P.L.L.C., accuses Fox of engaging in an extensive and unlawful campaign to block competition in the market for right-leaning pay television news, including Newsmax. [See Newsmax Complaint Against Fox]
Newsmax’s action seeks damages under Sections 1 and 2 of the Sherman Act, the Florida Antitrust Act, and the Florida Deceptive & Unfair Trade Practices Act.
It was not noted how, exactly, the lawsuit was materially different from the one it filed in Florida or if it corrected the defects that caused the original lawsuit to be tossed.
Fox News noticed the odd venue change, and it accused Newsmax of “forum shopping” and pointing that Newsmax’s allegations have nothing specifically to do with Wisconsin. Newsmax denied that, claiming it has an “absolute right” to file the lawsuit anywhere it wants and that its law firm chose Wisconsin based on prior success there — which, um, sounds a lot like forum shopping — and it has asked the judge to deny Fox News’ request to move the lawsuit to Florida.
You won’t read about these developments at Newsmax, though — the press release on the refiled lawsuit is the last item about it on the Newsmax website.