Verdict Against Disney Tossed Out

Walt Disney Co.’s ABC Radio Networks won the reversal of a $20-million jury verdict in a contract dispute involving Children’s Broadcasting Corp.

U.S. District Judge Donald D. Alsop said the jury’s finding that CBC suffered damage when ABC ended their alliance in 1996 was unwarranted. CBC charged that ABC broke the contract and then misappropriated CBC’s trade secrets to form its own children’s network, Radio Disney.

Friday’s ruling is a setback for Minneapolis-based CBC, which stopped distributing its AAHS World Radio format in January 1998.

CBC said it will appeal the ruling.