Ktla-tv Owner Nexstar Violated Court Order, A Federal Judge Finds

A national judge blasted KTLA-TV Channel 5’s owner, nan Texas-based Nexstar Media Group, connected Thursday for violating a tribunal bid and for failing to disclose cardinal information.

U.S. District Court Judge Troy N. Nunley recovered that Nexstar’s actions violated position of an April preliminary injunction that was designed to forestall nan media institution from moving forward pinch its $6.2-billion takeover of rival TV position group Tegna Inc. and meddling pinch its management.

The judge called Nexstar’s actions “brazen.” He demanded nan institution statesman submitting monthly reports and said a typical maestro would beryllium appointed to thief negociate nan antitrust lawsuit and show Nexstar for compliance.

And Tegna’s precocious constituted committee — filled pinch high-level Nexstar officials — must beryllium dissolved.

A Nexstar spokesperson wasn’t instantly disposable for comment.

Nexstar unveiled its Tegna takeover a twelvemonth ago. At nan time, TV stations were lobbying nan Federal Communications Commission to relax position ownership rules, a move that occurred Thursday successful a divided decision.

Last spring, California Atty. Gen. Rob Bonta and 7 different authorities attorneys wide challenged Nexstar’s projected acquisition, alleging nan roll-up of much than 250 section TV stations would break a U.S. antitrust rule intended to protect consumers and competitory markets.

Bonta and different plaintiff states based on nan consolidation would lead to section newsrooms shuttering, peculiarly successful smaller markets, specified arsenic Sacramento and Indianapolis, wherever Nexstar would ain aggregate web affiliates.

Despite Bonta’s lawsuit, Nexstar hurried nan adjacent time to finalize its acquisition of Virginia-based Tegna and swallow nan operation. Tegna disbanded, its shareholders were paid and apical Tegna executives exited.

Nunley, who is based successful Sacramento, is overseeing nan case. He initially issued a restraining order, followed by a much lengthy preliminary injunction that ordered Nexstar to halt its integration while nan tribunal lawsuit was pending.

Tegna should proceed to run arsenic a abstracted business portion — free from nan power of Nexstar, nan ruled.

But connected nan time that Nunley issued nan restraining order, Nexstar formed a caller Tegna committee filled pinch Nexstar officers, including Chief Executive Perry Sook, Chief Financial Officer Lee Ann Gliha, and Mike Biard, a erstwhile Fox executive who joined Nexstar successful 2023 arsenic main operating officer.

Nexstar countered that while Nunley’s bid said Nexstar labor were restricted from serving arsenic “officers,” it didn’t expressly opportunity they couldn’t service connected Tegna‘s committee “directors.”

“Defendants cannot convincingly reason that having Nexstar executives service connected TEGNA’s Board complies pinch nan preliminary injunction,” Nunley wrote successful Thursday’s order, adding that Nexstar’s position was “entirely disingenuous.”

Nexstar now must dissolve nan board.

“It is shocking that Defendants deliberation installing a Board of Directors comprised chiefly of Nexstar executives would not create power complete Tegna management,” Nunley wrote.

He besides admonished Nexstar for not providing that accusation successful immoderate of its filings pinch nan court. “Defendants person a work of candor to nan Court nether California Rule of Professional Conduct,” Nunley wrote.

His bid was designed “to sphere Tegna arsenic a abstracted and distinct, independently managed business portion from Nexstar,” Nunley wrote. “Nexstar’s power of nan Tegna Board will undoubtedly let it to power Tegna’s guidance and get entree to Tegna’s confidential information.”