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Guest Message by DevFuse

Retailer Attorneys Push DirecTV Case

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Posted 13 March 2002 - 04:08 AM

Attorneys representing satellite TV retailers fighting DirecTV said they were disappointed that a California judge didn't issue a preliminary injunction preventing the company from communicating with dealers about commissions and other pay issues.

Last week, a Los Angeles Superior Court judge denied a request for a preliminary injunction against the satellite TV provider that would have prevented the company from amending sales agreements with its dealers.

"While I wish (the judge) would have granted our motion for preliminary injunction, her 'suggestions' to DirecTV accomplish much of what we had hoped to achieve with a preliminary injunction anyway," said Allen M. Stewart, counsel to the plaintiffs.

Among the recommendations made by the judge, as reported by attorneys representing the plaintiffs, was extending the deadline for DirecTV dealers to respond to a letter from the company proposing a new compensation structure.

On Monday, DirecTV spokesman Bob Marsocci said the company was "pleased but not surprised" by the judge's ruling on the preliminary injunction. DirecTV has a motion for dismissal of the class action case, which will be taken up by the court on March 26.

"As we've said before, this is nothing more than a transparent attempt by the plaintiffs' lawyers to leverage a settlement in advance of the proposed merger with a promise of a substantial payday for themselves," Marsocci said.

The lawsuit alleges that DirecTV agreed to pay retailers commissions on new subscriber installations as well as residual monthly income based on a subscriber's monthly payments. The plaintiffs allege that DirecTV is withholding past and present commissions and residual payments, and are seeking more than $300 million in damages.

From <a href="http://www.skyreport.com" target=none>SkyReport</A> (Used with permission)

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