Legal News

Murdoch firm to pay Insignia $125 million

By (Click The Law)

Rupert Murdoch's News America Marketing has agreed to pay a whopping $125 million to settle a years-long lawsuit brought by tiny Insignia Systems Inc. that alleged Murdoch's people unfairly interfered and lied in attempt to take business from the Plymouth company, which provides in-store promotions.

The settlement, which is more than Insignia's market value and more than four times its 2009 revenue, was reached a day after the trial commenced before U.S. District Judge John Tunheim in Minneapolis.

The deal was announced after the markets closed Wednesday. Insignia's stock has traded lately at more than $6.50 per share, a five-year high and partly in anticipation by traders that Insignia would win a favorable outcome in light of recent, similar settlements reached by other competitors of News America, which is part of Murdoch's News Corp. holdings. Insignia shares closed at $7.57, up 3 percent in Wednesday's trading.

Under the settlement, New York-based News America will pay Insignia $125 million and Insignia will pay $4 million in return for a 10-year business arrangement that gives Insignia access to some News America clients. Insignia had sought more than $250 million in damages.

Full post as published by Click the Law on February 10, 2011 (boomark / email).