Judge gives initial OK to $48M CBS, Cox, Fox ad price-fixing settlement

Update: 

• An Illinois federal judge granted preliminary approval to a deal that will see CBS, Cox and Fox pay a combined $48 million as part of a settlement to resolve claims the television networks took part in a scheme with other major U.S. broadcasters to artificially inflate the cost of TV advertising.
• In an order filed June 14, U.S. District Court Judge Virginia M. Kendall says the deals are fair, reasonable and adequate. 
• Multidistrict litigation of the alleged price-fixing scheme dates back to 2018, at which time several complaints against major U.S. broadcasters accused them of working together to inflate advertising prices and sharing sensitive information.
• The settlement will benefit consumers in the United States who purchased television advertising from at least one broadcaster in a designated market area that had two or more of the defendants from January 2014 to December 2018.
• CBS, Fox and Cox will pay $5 million, $6 million and $37 million, respectively.

CBS/Fox class action settlement overview: 

• Who: CBS Corp., Cox Media Group and Fox Corp. have agreed to pay a combined $48 million to a class of television advertising buyers. 
• Why: The settlement resolves claims CBS, Fox and Cox took part in a price-fixing scheme involving other major U.S. broadcasters that artificially inflated the cost of TV advertising. 
• Where: The case is in Illinois federal court.

(June 6, 2023)

CBS, Cox and Fox have agreed to pay a combined $48 million as part of a settlement to resolve claims the television networks took part in a scheme with other major U.S. broadcasters to artificially inflate the cost of TV advertising.

The settlement will benefit a group of advertising buyers, who filed a motion last week seeking approval of agreements with CBS, Cox and Fox that were reached in principle in 2021 and 2022. 

CBS, Fox and Cox will pay $5 million, $6 million and $37 million, respectively, and have agreed to cooperate with the advertising buyers in ongoing litigation.  

“These amounts represent a significant relief for the Settlement Classes,” the motion states. 

The advertising buyers also settled with a sales tracking company, ShareBuilders Inc., that had claims against it dismissed last year. The company has agreed to cooperate with the buyers, per the settlement. 

“Plaintiffs respectfully submit that the four settlements, which were negotiated by experienced and informed counsel, are fair, reasonable, and adequate and in the best interests of the proposed settlement classes,” the motion states. 

Court denied TV broadcasters’ 2020 bid to dismiss allegations

Multidistrict litigation of the alleged price-fixing scheme dates back to 2018, at which time several complaints were filed against major U.S. broadcasters accused of working together to inflate advertising prices and sharing sensitive information, Law360 reports. 

The court reportedly denied in 2020 a bid by the broadcasters to have the claims against them dismissed. 

Following the latest agreements, broadcasters still involved in the multidistrict litigation are Sinclair, Nexstar, Raycom, Meredith, Scripps, Tegna and Griffin. 

Earlier this month, a lawsuit was filed against Fox News Network; its owner, Rupert Murdoch; his son; and Fox directors over claims the network harmed its shareholders by promoting a false narrative that the 2020 presidential election had been stolen from Donald Trump. 

Are you concerned with claims CBS, Cox and Fox were part of a price-fixing scheme? Let us know in the comments. 

The plaintiffs are represented by Freed Kanner London & Millen LLC, Hausfeld LLP and Robins Kaplan LLP

The CBS/Fox litigation is In re: Local TV Advertising Antitrust Litigation, Case No. 1:18-cv-06785, in the U.S. District Court for the Northern District of Illinois.

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