CLEAR CHANNEL GUILTY?

Tuesday, March 22, 2005
Clear Channel Entertainment Ordered To Pay $90 Million

The company was cleared of antitrust allegations, but a Chicago judge directed Clear Channel to pay $73 million in punitive damages and $17 million in lost profits to rival event promoter Jam Productions after a jury ruled that Clear Channel Entertainment intentionally interfered with Jam's business dealings.
According to the Associated Press, plaintiff's lawyers alleged during the six-week trial that, after Jam signed a 90-day exclusive negotiating agreement with the American Motorcycle Association to promote motorcycle racing events, Clear Channel Entertainment and the AMA illegally negotiated a separate deal. Then, they said, CCE threatened local stadium operators with pulling other Clear Channel events from their venues if they worked with Jam on the AMA deal. Jam lawyers presented e-mails from Clear Channel executives discussing the AMA bid, including one suggesting DJs at two Clear Channel radio stations should badmouth both the AMA and Jam on the air.
"This is an important case in that this jury found that Clear Channel's conduct here was so grossly inappropriate that they awarded punitive damages," Jam attorney Jeffrey Singer said.
However, while Clear Channel Chief Legal Officer Andy Levin says his company will "vigorously appeal" the decision, he is pleased that Clear Channel was cleared of the antitrust charges. "This jury's decision that Clear Channel did not violate antitrust laws sends a powerful signal to those who seek to wrongfully accuse us in the future," he said.
Levin added, "We are disappointed that the jury agreed with Jam Sports' other claim and failed to see this case for what it actually was — a disgruntled competitor that could not succeed in the marketplace and so took its case to a courtroom."