A federal judge has rejected Newsmax’s lawsuit alleging Fox News violated U.S. antitrust laws by squeezing out rival conservative news networks.
The court’s decision came two days after the case was filed.
However, U.S. District Court Judge Aileen M. Cannon said she would give Newsmax a do-over. The Boca Raton, Fla.-based network has until Thursday to refile its lawsuit against Rupert Murdoch’s media company and top-rated cable news network to comply with judicial style.
In her two-page ruling on Friday, Cannon said Newsmax’s lawyers inappropriately tried to build their case by stringing together allegations to compound their effect.
“We understand this is just a technical matter and our law firm is refiling,” Newsmax said in a statement.
Newsmax sued Fox News and its parent Fox Corp. on Wednesday, accusing Murdoch’s television company of anticompetitive behavior to maintain its “unlawful monopolization of the right-leaning pay TV news market.”
Lawyers for Newsmax alleged Fox used its market clout to discourage pay-TV distributors from carrying or promoting Newsmax and other rival conservative news outlets. Newsmax claimed Fox News resorts to intimidation campaigns, including by pressuring guests not to appear on Newsmax.
“But for Fox’s anticompetitive behavior, Newsmax would have achieved greater pay TV distribution, seen its audience and ratings grow sooner, gained earlier ‘critical mass’ for major advertisers and become, overall, a more valuable media property,” Newsmax said in its lawsuit.
Fox News scoffed at the allegations.
“Newsmax cannot sue their way out of their own competitive failures in the marketplace to chase headlines simply because they can’t attract viewers,” the company said in a statement.
Murdoch’s company declined further comment on Friday.
The Trump-appointed judge wrote that Newsmax’s lawsuit was structured as a “shotgun pleading” — a complaint that contains “multiple counts where each count adopts the allegations of all preceding counts.”
Should Newsmax try again, it must untangle its arguments.
“Each count must identify the particular legal basis for liability and contain specific factual allegations that support each cause of action within each count,” Cannon wrote.
