Jury Awards Valassis $300 Million in First News America Lawsuit
23 Juillet 2009 - 5:28PM
PR Newswire (US)
News America Ordered to Pay Damages; Valassis Moving Forward with
Two Remaining Trials LIVONIA, Mich., July 23 /PRNewswire-FirstCall/
-- Valassis (NYSE:VCI), one of the nation's leading media and
marketing services companies, announced today that the company was
awarded $300 million for compensatory damages in its lawsuit
against News America Marketing (NAM), a subsidiary of News
Corporation. In the trial, held in Michigan's Wayne County Circuit
Court before the Honorable Michael F. Sapala, Valassis claimed
unfair competition and tortious interference by NAM. The jury's
verdict found NAM liable for both counts. "We are pleased with the
jury's verdict, and we look forward to moving ahead with our two
other cases, including the antitrust case in the Eastern District
of Michigan where any compensatory damages will be trebled," said
Alan F. Schultz, Valassis Chairman, President and Chief Executive
Officer. "Furthermore, I am very proud of the efforts of our
employees who have been competing on this uneven playing field for
nearly a decade." The trial team was led by Greg Curtner of Miller,
Canfield, Paddock and Stone, PLC and included Michael Palizzi, also
of Miller Canfield, David Mendelson of the Law Offices of David
Mendelson and Anthony Rusciano of Plunkett Cooney PC. Valassis has
additional lawsuits pending against NAM in the United States
District Court, Eastern District of Michigan, asserting violations
of the Sherman Act, and in the Supreme Court of the State of
California for the County of Los Angeles raising claims under
California's Cartwright, Unfair Competition and Unfair Practices
Acts. The Eastern District of Michigan case and the California case
are currently not scheduled for trial, however, Valassis intends to
aggressively pursue both remaining claims. For more information
regarding these lawsuits, see Valassis' most recently filed Form
10-Q. For case information and transcript requests, please contact
the court directly at 313-224-5531. About Valassis Valassis is one
of the nation's leading media and marketing services companies,
offering unparalleled reach and scale to more than 15,000
advertisers. Its RedPlum media portfolio delivers value on a weekly
basis to over 100 million shoppers across a multi-media platform -
in-home, in-store and in-motion. Through its interactive offering -
redplum.com - consumers will find compelling national and local
deals online. Headquartered in Livonia, Michigan with approximately
7,000 associates in 28 states and eight countries, Valassis is
widely recognized for its associate and corporate citizenship
programs, including its America's Looking for Its Missing Children
program. Valassis companies include Valassis Direct Mail, Inc.,
Valassis Canada, Promotion Watch, Valassis Relationship Marketing
Systems, LLC and NCH Marketing Services, Inc. For more information,
visit http://www.valassis.com/ or http://www.redplum.com/. Safe
Harbor and Forward-Looking Statements Certain statements found in
this document constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements involve known and unknown risks and
uncertainties and other factors which may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among
others, the following: price competition from our existing
competitors; new competitors in any of our businesses; a shift in
client preference for different promotional materials, strategies
or coupon delivery methods, including, without limitation, as a
result of declines in newspaper circulation; an unforeseen increase
in paper or postal costs; changes which affect the businesses of
our clients and lead to reduced sales promotion spending,
including, without limitation, a decrease of marketing budgets
which are generally discretionary in nature and easier to reduce in
the short-term than other expenses; our substantial indebtedness,
and ability to refinance such indebtedness, if necessary, and our
ability to incur additional indebtedness, may affect our financial
health; the financial condition, including bankruptcies, of our
clients, suppliers, senior secured credit facility lenders or other
counterparties; our ability to comply with or obtain modifications
or waivers of the financial covenants contained in our debt
documents; certain covenants in our debt documents could adversely
restrict our financial and operating flexibility; recent
disruptions in the credit markets that make it difficult for
companies to secure financing; fluctuations in the amount, timing,
pages, weight and kinds of advertising pieces from period to
period, due to a change in our clients' promotional needs,
inventories and other factors; our failure to attract and retain
qualified personnel may affect our business and results of
operations; a rise in interest rates could increase our borrowing
costs; we may be required to recognize additional impairment
charges against goodwill and intangible assets in the future; the
outcome of ADVO's pending shareholder lawsuits; our current
litigation with News America Incorporated may be costly and divert
management's attention; possible governmental regulation or
litigation affecting aspects of our business; the credit and
liquidity crisis in the financial markets could continue to affect
our results of operations and financial condition; reductions of
our credit rating may have an adverse impact on our business;
counterparties to our secured credit facility and interest rate
swaps may not be able to fulfill their obligations due to
disruptions in the global credit markets; uncertainty in the
application and interpretation of applicable state sales tax laws
may expose us to additional sales tax liability; and general
economic conditions, whether nationally, internationally, or in the
market areas in which we conduct our business, including the
adverse impact of the ongoing economic downturn on the marketing
expenditures and activities of our clients and prospective clients
as well as our vendors, with whom we rely on to provide us with
quality materials at the right prices and in a timely manner. These
and other risks and uncertainties related to our business are
described in greater detail in our filings with the United States
Securities and Exchange Commission, including our reports on Forms
10-K and 10-Q and the foregoing information should be read in
conjunction with these filings. We disclaim any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Contacts: Investors Mary Broaddus Director, Investor Relations and
Corporate Communications 734-591-7375 Media Andy Baron PAN
Communications 978-474-1900 DATASOURCE: Valassis CONTACT:
Investors: Mary Broaddus, Director, Investor Relations and
Corporate Communications of Valassis, +1-734-591-7375, ; or Media:
Andy Baron of PAN Communications for Valassis, +1-978-474-1900, Web
Site: http://www.valassis.com/
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