A federal judge on Thursday blasted Nexstar Media Group for “brazen” violations of a court order blocking its $6.2-billion takeover of Tegna Inc., ordered the company to dissolve Tegna’s board packed with Nexstar executives, and imposed strict new oversight including monthly reports and a special master.
U.S. District Judge Troy L. Nunley, based in Sacramento, ruled that the Texas-based owner of KTLA-TV Channel 5 violated the terms of an April preliminary injunction designed to stop Nexstar from integrating Tegna or interfering with its management while an antitrust lawsuit proceeds. He also faulted the company for failing to disclose key information.
Nunley rejected Nexstar’s argument that the injunction barred its employees only from serving as Tegna “officers,” not as “directors.”
“Defendants cannot convincingly argue that having Nexstar executives serve on TEGNA’s Board complies with the preliminary injunction,” he wrote, calling the company’s position “entirely disingenuous.”
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| Perry Sook |
California Attorney General Rob Bonta and seven other state attorneys general sued last spring, arguing the combination of more than 250 local TV stations would harm competition and consumers, potentially leading to newsroom closures in markets such as Sacramento and Indianapolis. Despite the lawsuit and an initial restraining order, Nexstar completed the purchase of Virginia-based Tegna the next day, paid shareholders, and saw Tegna’s top executives depart.
On the same day Nunley issued the restraining order, Nexstar installed its own executives on the new Tegna board. The judge’s preliminary injunction later reinforced that Nexstar must halt integration pending the outcome of the case. The FCC’s decision Thursday to relax station ownership rules came after TV groups had lobbied for the change.