Sunday, February 10, 2008

Court Approves Consent Decree Between Minnesota AG and News America Marketing

Last week, the U.S. District Court in Minnesota approved a consent decree entered into between the Minnesota Attorney General and News America Marketing.

The Minnesota AG had intervened in the ongoing lawsuit between Insignia Systems and News America in December 2006, alleging that News America had engaged in deceptive trade practices. I previously discussed the lawsuit here.

Under the terms of the consent decree, the State agreed to release its claims without an admission of liability from News America. In return, News America agreed that it would not make any further representation to any CPG or other customer regarding Insignia's compliance rate through December 31, 2003, falsely disparage its competitors, or violate the Minnesota Deceptive Trade Practices Act, Section 325D.44. News America also agreed to pay $20,000 in attorneys' fees to Minnesota.

Insignia's lawsuit against News America continues. The parties have spent the last several months in discovery, including motions for protective orders and motions to compel. The court recently entered a revised scheduling order, as follows:

  • May 16, 2008 -- Discovery ends.
  • August 26, 2008 -- Dispositive motions due.
  • December 12, 2008 -- Ready for trial.

Insignia probably would have preferred that the Minnesota Attorney General continue its lawsuit rather than enter into the Consent Decree, as the presence of the State as a party at trial would have added to Insignia's credibility. The consent decree provides limited benefit to Insignia, and does little to punish News America for its alleged bad acts.

Related Post: News America Marketing's Bullying, and Insignia Systems' Ongoing Lawsuit.


The Law Firm of Kotchen & Low LLP - Civil Litigation, Counseling, and Representation Before Government Agencies

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