Cablevision Class Action Settlement Reached Over Fox Blackout

Cablevision Systems Corporation has reportedly agreed to settle a class action lawsuit alleging subscribers were improperly denied access to several Fox channels during a contract dispute between the cable company and News Corporation.

Under the terms of the proposed Fox blackout class action settlement, Cablevision will provide eligible Class Members with services worth about $7 to $10.

The Cablevision class action lawsuit was filed on October 29, 2010 after the contract dispute between Cablevision and News Corp. caused nearly 3 million homes in the New York metropolitan area to experience a two-week Fox blackout.

Instead of receiving the Fox stations, subscribers’ Fox channels were reportedly redirected to a channel that played a looped message blaming News Corp. for attempting to “extort unreasonable and unfair fee increases,” the Cablevision class action lawsuit alleged.

Cablevision “played a game of chicken with News Corp. at the expense of Cablevision’s customers,” the Fox blackout class action lawsuit claimed. As a result of the Fox blackout, they were reportedly deprived of Fox News, Major League Baseball postseason, New York Giants football and other Fox programming.

The plaintiffs said they were entitled to a credit in connection with the blackout of the Fox stations but Cablevision failed to provide them with any credits, rebates or other form of compensation.

In February 2011, the Cablevision class action lawsuit was consolidated with several other similar Fox blackout class action lawsuits. The consolidated Cablevision Fox blackout class action lawsuit asserted claims for breach of contract, breach of the implied covenant of good faith and fair dealing, unjust enrichment, consumer fraud, and permanent injunctive relief.

Cablevision vigorously fought against the Fox blackout class action lawsuit but was unable to convince the court to dismiss the litigation. The cable company denies the allegations but agreed to settle the Fox blackout class action lawsuit to avoid the burden and expense of ongoing litigation.

Class Members of the proposed Cablevision class action settlement include anyone who had a Cablevision contract prior to Oct. 16, 2010 to receive cable TV services on or after Oct. 16, 2010. Available benefits will depend on each Class Member’s Cablevision subscription status, and include the option to view two free movies, receive one month of Cablevision Service Protection, or receive two free Wi-Fi day passes.

On July 6, the plaintiffs filed a memorandum supporting their unopposed motion for preliminary approval of the Cablevision class action settlement.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Ralph M. Stone of Stone Bonner & Rocco LLP, Todd J. Krouner of the Law Offices of Todd J. Krouner, and Carol S. Shahmoon of CCS Legal Group PLLC.

The Cablevision Fox Blackout Class Action Lawsuit is Pearlman, et al. v. Cablevision Systems Corporation, Case No. 2:10-cv-04992, in the U.S. District Court for the Eastern District of New York.