Judge Dismisses Newsmax Suit Against FOX
Judge Aileen Cannon dismissed Newsmax’s anti-trust suit against Fox Corporation and FOX News Network LLC, calling it an impermissible “shotgun pleading.” Judge Cannon provides the following definition of a shotgun pleading in her ruling:
“The most common type [of shotgun pleading] – by a long shot – is a complaint containing multiple counts where each count adopts the allegations of all preceding counts, causing each successive count to carry all that came before and the last count to be a combination of the entire complaint.” The suit was dismissed without prejudice which gives Newsmax the opportunity to file an amended complaint, but it must do so by September 11 and “must not contain any successive counts that incorporate all prior allegations.” Judge Cannon also adds that if an amended complaint is filed, “each count must identify the particular legal basis for liability and contain specific factual allegations that support each cause of action within each count.
exclude or marginalize competitors like Newsmax. Further, Newsmax alleges that FOX News, “described in the complaint as a ‘must-have’ channel for distributors, leverages its market power to impose restrictions that harm consumers, stifle competition, and drive-up costs across the pay TV ecosystem.” Specifically, Newsmax alleges that “FOX conditions access to FOX News on 
agreements by distributors not to carry or to restrict competing right-leaning news channels. If distributors carry Newsmax, FOX forces them to also carry low-demand channels like FOX Business or FOX Sports 2 in their most widely viewed tiers, triggering potentially tens of millions in extra fees. These clauses penalize distributors for placing Newsmax in basic packages by requiring simultaneous promotion of FOX less popular channels.” Also, Newsmax alleges that FOX has pressured its guests to not appear on Newsmax, as well as has run online smear campaigns and hired private investigators targeting Newsmax executives to damage the Company’s credibility. Newsmax is asking the court to: 1) Declare FOX’s conduct unlawful under federal and state antitrust laws; 2) Award monetary damages as permitted by law; 3) Enjoin FOX from continuing exclusionary contracts and monopolistic practices; and 4) Order equitable relief to restore competition in right-leaning pay TV news.