Cumulus Media has attributed its recent Chapter 11 bankruptcy filing, in part, to Nielsen Ratings' policy of linking national and local ratings sales, calling it a "significant contributing cause." However, Nielsen is challenging this claim in the U.S. Court of Appeals for the Second Circuit, arguing that both district court findings and Cumulus's own executives contradict the allegation.
Nielsen points to previous statements from Cumulus's bankruptcy filings, which cited "industry decline, macroeconomic pressure, elevated interest expense, and looming maturities" as reasons for its financial distress, with Nielsen's conduct only "exacerbating" the situation. Nielsen suggests this undermines Cumulus's narrative of irreparable harm, reframing the dispute as a "standard commercial disagreement over pricing" or an "ordinary overcharge claim." Nielsen states that if Cumulus ultimately proves antitrust violations, it can recover damages later.
Cumulus is seeking to uphold a preliminary injunction issued in January by U.S. District Judge Jeannette Vargas. The injunction was granted after Cumulus showed a likelihood of success on its claims and that it would suffer irreparable harm without it, preventing Nielsen from enforcing its tying policy through excessive pricing.
The Cumulus-Nielsen anti-trust case is now paused due to Cumulus’ bankruptcy.