KTLA-TV owner Nexstar violated court order, a federal judge finds

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

U.S. District Judge Troy Nunley recovered that Nexstar’s actions violated presumption of an April preliminary injunction that was designed to forestall the media institution from moving guardant with its $6.2-billion takeover of rival TV presumption radical Tegna Inc. and meddling with its management.

The justice called Nexstar’s actions “brazen.” He demanded the institution statesman submitting monthly reports and said a peculiar maestro would beryllium appointed to assistance negociate the antitrust lawsuit and show Nexstar for compliance.

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

A Nexstar spokesperson wasn’t instantly disposable for comment.

Nexstar unveiled its Tegna takeover a twelvemonth ago. At the time, TV stations were lobbying the Federal Communications Commission to unbend presumption ownership rules, a determination 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 the roll-up of much than 250 section TV stations would interruption a U.S. antitrust instrumentality intended to support consumers and competitory markets.

Bonta and different plaintiff states argued the consolidation would pb 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 the adjacent time to finalize its acquisition of Virginia-based Tegna and swallow the operation. Tegna disbanded, its shareholders were paid and apical Tegna executives exited.

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

Tegna should proceed to run arsenic a abstracted concern portion — escaped from the power of Nexstar, the justice ruled.

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

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

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

Nexstar present indispensable dissolve the board.

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

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

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