Pegasus Must Pay DirecTV $51.5 Million, Jury Says
A federal jury in Los Angeles awarded DirecTV Group Inc. $51.5 million Wednesday in a marketing dispute with Pegasus Communications Corp., which promotes the DirecTV satellite television service in rural U.S. areas.
El Segundo-based DirecTV, the largest U.S. satellite television service, will ask the judge to separately award an additional $11 million in interest, DirecTV said. The trial in U.S. District Court in Los Angeles is one of several legal disputes between the companies.
Shares of Bala Cynwald, Pa.-based Pegasus fell $4.33, or 12%, to $30.21 on Nasdaq after the verdict was announced. The company said it had expensed $35 million as an accrued liability on its balance sheet in anticipation of the jury’s award.
“We will be giving careful consideration to our legal options respecting the verdict, including our rights of appeal,” Cheryl Crate, vice president of communications for Pegasus, said in a statement.
Shares of DirecTV rose 25 cents to $17.15 in New York Stock Exchange trading.
DirecTV sued Pegasus in 2001, alleging that Pegasus had ceased reimbursing DirecTV for the cost of activating new subscribers in Pegasus’ territory.
Pegasus countersued, alleging it was defrauded and seeking the return of $29 million it already had paid DirecTV.
The biggest entertainment stories
Get our big stories about Hollywood, film, television, music, arts, culture and more right in your inbox as soon as they publish.
You may occasionally receive promotional content from the Los Angeles Times.
