Sinclair Broadcast Group filed a countersuit Wednesday in an escalating legal battle with Tribune Media, after the two companies' proposed merger fell apart this month under federal scrutiny.
According to the Chicago Tribune, the counterclaim maintains that Sinclair "pushed hard" to secure regulatory approval for the proposed tie-up and called Tribune's subsequent attempt to distance itself from Sinclair "self-serving." Sinclair is asking a Delaware court to find that it was Tribune that broke the terms of the merger agreement.
"Tribune, through its meritless lawsuit, is seeking to capitalize on an unfavorable and unexpected reaction from the Federal Communications Commission to capture a windfall for Tribune," said Sinclair chief executive Chris Ripley.
Sinclair's filing comes weeks after Chicago-based Tribune sued Sinclair for breach of contract, alleging that Sinclair's dealings with regulators charged with reviewing the deal were marked by "belligerent and unnecessarily protracted negotiations." Tribune is seeking damages of $1 billion in the suit.
Sinclair had sought to purchase dozens of broadcast stations from Tribune in a $3.9 billion deal. But the FCC last month voted to subject the proposal to further legal review, over "serious concerns" raised by Chairman Ajit Pai.
Pai said that certain stations Sinclair had proposed selling off as a condition of the deal risked staying within Sinclair's effective control, which could violate federal regulations. There were other concerns that Sinclair may have been less than transparent with the agency over its divestiture plans, Pai said at the time.
Although Sinclair insisted that it had fully complied with regulators, the FCC's decision to send the merger to an administrative law judge became a turning point for the deal. On Aug. 8, Tribune withdrew from the plan and sued Sinclair.
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