Counsel Concerns

When Weil, Gotshal & Manges litigators get tapped for an antitrust class action, it's usually assumed the firm is playing defense. But a bit of role-reversal paid off for Weil Gotshal in February, when a judge awarded the firm $16.1 million in class counsel fees and expenses, and signed off on a $58.5 million settlement payment it negotiated from the music performance-rights organization SESAC.

Federal District Judge Paul Engelmayer in Manhattan granted final approval to the settlement, which resolved claims that Weil Gotshal brought on behalf of a group of network television affiliates. Meredith Corp. v. SESAC LLC, 09 Civ. 9177. The deal capped more than five years of litigation over claims that SESAC violated federal antitrust law through its practice of issuing blanket, all-or-nothing copyright licenses to local stations. The $16.1 million that Judge Engelmayer awarded Weil Gotshal amounted to about 27% of the entire settlement amount.

Local TV stations that want to air syndicated shows, commercials and sporting events typically negotiate licenses with performing rights organizations like SESAC. Weil Gotshal's team, including Steven Reiss and R. Bruce Rich, alleged that SESAC made all-or-nothing licenses the only viable choice for local TV broadcasters, allowing it to jack up prices and force the stations to pay for music they'd never actually use.

SESAC was originally represented in the case by lawyers from Jenner & Block but later turned to the law firm Joseph Hage Aaronson. After losing a bid to dismiss the case in 2010, SESAC moved for summary judgment in 2013, arguing that the stations lacked sufficient evidence in support of their antitrust claims. District Judge Engelmayer, who inherited the case in September 2011, denied the summary judgment bid, though he agreed at that time to narrow the scope of the case.

Scott Flaherty writes for Litigation Daily, an ALM sibling of Entertainment Law & Finance.

When Weil, Gotshal & Manges litigators get tapped for an antitrust class action, it's usually assumed the firm is playing defense. But a bit of role-reversal paid off for Weil Gotshal in February, when a judge awarded the firm $16.1 million in class counsel fees and expenses, and signed off on a $58.5 million settlement payment it negotiated from the music performance-rights organization SESAC.

Federal District Judge Paul Engelmayer in Manhattan granted final approval to the settlement, which resolved claims that Weil Gotshal brought on behalf of a group of network television affiliates. Meredith Corp. v. SESAC LLC, 09 Civ. 9177. The deal capped more than five years of litigation over claims that SESAC violated federal antitrust law through its practice of issuing blanket, all-or-nothing copyright licenses to local stations. The $16.1 million that Judge Engelmayer awarded Weil Gotshal amounted to about 27% of the entire settlement amount.

Local TV stations that want to air syndicated shows, commercials and sporting events typically negotiate licenses with performing rights organizations like SESAC. Weil Gotshal's team, including Steven Reiss and R. Bruce Rich, alleged that SESAC made all-or-nothing licenses the only viable choice for local TV broadcasters, allowing it to jack up prices and force the stations to pay for music they'd never actually use.

SESAC was originally represented in the case by lawyers from Jenner & Block but later turned to the law firm Joseph Hage Aaronson. After losing a bid to dismiss the case in 2010, SESAC moved for summary judgment in 2013, arguing that the stations lacked sufficient evidence in support of their antitrust claims. District Judge Engelmayer, who inherited the case in September 2011, denied the summary judgment bid, though he agreed at that time to narrow the scope of the case.

Scott Flaherty writes for Litigation Daily, an ALM sibling of Entertainment Law & Finance.