By: E&P Staff
Valassis has settled its lawsuit against competitor News America Marketing, a division of News Corp.
Under the terms of the agreement, News America will pay Valassis $500 million and will enter into a 10-year shared mail distribution deal. Additionally the judge overseeing the case in the U.S. District Court in Eastern Michigan will issue a permanent injunction related to certain business practices at issue in the lawsuits.
Valassis accused News America of partaking in anticompetitive business tactics in a lawsuit scheduled to go to trial on Feb. 2. The settlement was reached Saturday.
In a statement issued by News Corp. President and COO Chase Carey said, “It has become evident to our legal advisors from pre-trial proceedings over the past couple of weeks that significant risks were developing in presenting this case to a jury. That, coupled with concerns over the venue, led us to believe it was in the best interests of the Company and its stockholders to agree to a settlement.”
The settlement covers the $300 million Valassis won in July in a Michigan circuit court, currently on appeal, and a pending court case in California.
Valassis Chairman, President and CEO Alan F. Schultz said in a statement, that he is “pleased” they were able to reach a favorable agreement, avoiding protracted litigation.