By Matthew Russell Lee, Patreon
BBC - Guardian UK - Honduras - ESPN
SDNY COURTHOUSE, July 19 – It was late on a Friday night, on May 12, when News Corporation sued CB Neptune Holdings, LLC.
Now after a jury went past 6 pm on Friday, July 16 without reaching a decision in a case against News Corp, the company settled, secretly.
In the docket of the U.S. District Court for the Southern District of New York, found by Inner City Press, there is was: a complaint filed by Gibson Dunn, seeking a declaratory judgment,
News Corporation sued CB Neptune Holdings, LLC, et al., 21-cv-4610.
Quick research found in a News Corp SEC filing: "Item 2.01 Completion of Acquisition or Disposition of Assets. On May 5, 2020, News Corporation (the “Company”) completed the previously announced sale of its News America Marketing business (“NAM”) to CB Neptune Holdings, LLC and CB Neptune Canada Sub Inc., affiliates of Charlesbank Capital Partners (the “Transaction”). The aggregate purchase price for the Transaction consists of (a) up to approximately $235 million, comprised of (i) $50 million in cash at closing, subject to working capital and other adjustments, less cash reinvested to acquire a 5% equity interest in the business at closing, and (ii) additional deferred cash payments payable on or before the fifth anniversary of closing in an aggregate amount of between $125 million and approximately $185 million, depending on the timing of such payments, and (b) a warrant to purchase up to an additional 10% equity interest in the business, which is exercisable on or prior to the seventh anniversary of closing. In the Transaction, the Company retained certain liabilities relating to NAM, including those arising from its ongoing legal proceedings with Valassis Communications, Inc."
On June 9, SDNY Judge P. Kevin Castel held a final pre-trial conference in the Valassis v. News Corp proceeding, and Inner City Press live tweeted it, here:
In run-up to antitrust jury trial in Valassis versus News Corp for allegedly locking it out of the in-store promotion advertisement market, SDNY Judge Castel is holding a pre-trial conference.
Judge Castel: You'll notice that the cell phone rules in the courthouse have been suspended [ended?] and you can discrete text. The witness box will be sprayed down between witnesses.
Judge Castel: I don't expect there to be major changes before, say, mid July. So these will be the rules. If you run out of witnesses, that's tantamount to resting. I'm very jealous of the jurors' time.
Judge Castel: You asked about bringing food in. You can send someone out to buy it, or it can be delivered below. That's your business. The cafeteria is open on the 8th floor of the courthouse. Exhibits can only be in electronic form.
On June 29, the trial was underway on the 23rd floor of 500 Pearl Street. Inner City Press went up and covered it. Valassis' witness described being nixed by News Corp which reached out to the highest levels of K-Mart. Judge Castel repeated told the witness to answer only the question asked, and kept it rolling to 5 pm, then past after the jury left.
Afterward, near 7 pm, News Corp's counsel filed a letter seeking to exclude Valassis' testimony about statements mae by CPGs including Kimberly Clark, General Mills, Kmart and Mars, now offered for their truth. News Corp says, "The testimony should be stricken and related documents should be excluded."
On June 30, Valassis said as long as it can show them to the jury, it takes no position on keeping Mars' documents under seal in the docket - where Judge Castel has admonished the parties against referring to any shareholder or non-party affiliate of a party in testimony or argument of any kind in the presence of the jury.
Meanwhile, when smart phones all over the courthouse went off in the afternoon with a robo-warning to reduce electrical use during the heat wave, Judge Castel paused the proceedings and read it out loud. Letting the jurors go at 5 pm on the dot, he told them to keep cool.
On July 1, Valassis wrote to Judge Castel arging for the admission of deposition clips like Foster Farm's Ms. Corsiglia-Keim calling NAM a monopoly, and testimony about gifts to Food Lion.
On July 6, Valassis called to the stand Martin Garofalo of NAM. He smirked and made analogies to baseball. By late afternoon, shown an early video of himself speaking to laughter about competition, he explained to the jurors what he meant.
On July 8, the questioning went to 4:59 pm and got testy, with an expert witness taking umbrage at being accused of lying. He said it just a matter of two metholodies, and that his is the correct one.
On July 9, Judge Castel again took things to 5 pm, with a cocky News Corp witness in the box, then said that while he usually instructs jurors not to think about their trial over the weekend, he didn't think that was a danger here.
On July 12, the testimony again went all the way to 5 pm, and even a few minutes beyond, with references to Safeway and Goldman Sachs.
Judge Castel told the jurors the defense has only one more witness. Then after they left, the defense said they may rest at 3:30 pm. Judge Castel said he would not start summations then, but rather use the last hour and a half to start the jury charge.
And on July 13 that is how it went, though the jury charge did not start until 4:44 pm. After the jury left, Judge Castel asked who had written the letter he got midday.
The author was in the courtroom; the letter was to reject an interrogatory on finding a separate market, so the jury's verdict is less likely to be vacated on appeal. Judge Castel told the jurors, and the parties, see you tomorrow morning.
On July 15, the jury continued deliberating and sent out a note, asking if an act could be anti-competitive but legal, and another question. Judge Castel, who joked that he felt like the proctor at a final exam, drafted a response then took comments on it.
On July 16, when a verdict was expected, none came. Past 6 pm, on the call-in line, someone turn on Tom Petty's song, "The Waiting is the Hardest Part." Then this, from Judge Castel:
"I'm going to see you on Monday at 10:30 am. I'm not really going to see you. You'll go to the jury room. You've been great jurors. Don't break the rules. You know the case better than anyone else. No one can help you.
Judge Castel: It's not a time to do Internet searches. Go home. Now I'll say to you, put it out of your mind. Good night. Thank you."
And on July 19, a stipulation of voluntary dismissal; "the terms of the deal were not publicly disclosed." Sheesh.
This case is, or was, Valassis Communications, Incorporated v. News Corporation et al., 17-cv-7378 (Castel).
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