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Satellite

DirecTV Gets Court Win vs. Pegasus

4/14/2004 9:56 AM Eastern

A federal jury awarded DirecTV Inc. $51.5 million in damages from Pegasus Communications Corp. regarding a lawsuit Pegasus filed against the direct-broadcast satellite giant claiming that DirecTV breached a joint marketing contract.

The U.S. District Court for the Central District of California found in favor of DirecTV on its claims that DirecTV had substantially performed its obligations under the joint marketing agreement but Pegasus had breached the contract.

The jury’s $51.5 million damage award represents amounts unpaid by Pegasus under the agreement. The court will separately consider DirecTV’s request for prejudgment interest of more than $11 million.

In January, the same federal court ruled that a proposed settlement agreement between DirecTV and certain members of the National Rural Telecommunications Cooperative was fair and granted final approval of the class-action settlement.

Pegasus was not a party to that settlement, and neither the settlement nor this jury verdict resolves the related pending litigation between DirecTV and Pegasus. DirecTV moved to dismiss Pegasus’ remaining claims, and its motion is set for hearing April 28.

September