Nielsen sued the Memphis-based broadcaster in early February, alleging breach of contract for non-payment. The measurement giant claimed Flinn failed to pay $136,872.88 for PPM ratings for its Memphis cluster during an eight-month period in 2015.
Within 10 days later, Flinn struck back with a countersuit, alleging that Nielsen fraudulently induced it into entering the agreements and then breached its contracts by publishing ratings based on what it called faulty PPM methodology. Flinn’s counterclaim shot holes in the Memphis PPM ratings service methodology, claiming its sample size and demographic representation were insufficient and adversely impacted minority broadcasters such as Flinn.
The PPM, which remains unaccredited by the Media Rating Council in Memphis, produced results that were “unreliable, false and misleading,” Flinn claimed, arguing that Nielsen had an obligation to “disclose such facts” before signing Flinn to a ratings contract.
In late March, a U.S. magistrate judge ordered a settlement conference for May 11, even as the legal back and forth between the two parties showed no signs of abating. Last week’s Settlement Order from U.S. district judge Ellen Hollander said the case had been settled, including all counterclaims. The Settlement Order is “without prejudice” to the right of either party to reopen the case within 30 days if the settlement isn’t consummated.
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