Valassis, News America Marketing Settle Case for $500 Million

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.

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