Damages expert Clifford Kupperberg continued his testimony on Wednesday in the Guardian's predatory pricing trial against SF Weekly and Village Voice Media. He put forth six "damage models," which estimated the financial toll on the Guardian by the Weekly's alleged below-cost sales at anywhere between $4 million to $11.8 million. For more details, check out the reports from the Bay Guardian and from the Weekly. The trial resumes today with continued cross-examination of Kupperberg.
The paper yesterday filed a formal Notice of Claim against the officials responsible for the October blowup which ended with the paper's founders in jail. The notice, which is required by Arizona law to be filed before government officials can be sued, accuses the defendants of violating Michael Lacey's and Jim Larkin's constitutional rights, with malicious prosecution, racketeering and conspiracy. The paper is asking for $15 million in damages if the matter is settled before April 15. "If New Times is required to pursue litigation, the settlement demand will increase," the notice warns. "This is not a decision undertaken lightly," says Lacey. "But I feel like if we don't do something, it's an invitation for this kind of behavior to continue." The County Attorney's office, which is named in the claim, dismisses the legal maneuver as "frivolous," with a spokesman telling the Arizona Republic: "We are confident that it will be exposed as the bunk it is."
SF Weekly publisher Josh Fromson took the stand on Friday and remained there until Tuesday (there was a day off on Monday for President's Day), and Bay Guardian expert witness Clifford Kupperberg also appeared before the court Tuesday. For more details, check out the reports from the Weekly, which says Kupperberg talked about "imaginary profits and damages," and the Guardian, which says Fromson "dodge[d] the facts."
Harvard Univ. economics professor Dr. Joseph Kalt and newspaper analyst John Morton testified on Village Voice Media's behalf on Thursday. Former SF Weekly publisher Troy Larkin also took the stand. SF Weekly reports on the testimony of Kalt, Morton and Larkin, while SFBG sticks with Kalt and Morton for now. The trial resumes today with the cross-examination of Larkin.
The predatory pricing trial resumed yesterday after taking Tuesday off. Village Voice Media chief financial officer Keating finished his testimony, and three more witnesses were called: Jennifer Vernon from Live Nation (formerly Clear Channel Concerts); James Higginbotham of International Demographics, the company that runs Media Audit; and the SF Weekly's expert witness, economics professor Joseph P. Kalt. For more details, check out reports from the Guardian and the Weekly.
Village Voice Media chief financial officer Jed Brunst and former SF Weekly publisher Chris Keating took the stand yesterday in the predatory-pricing trial. In its wrap-up, the SF Weekly focuses on the part of Brunst's testimony that offered "evidence that Weekly rates have been going up over time," not down. The Bay Guardian, on the other hand, focuses on the "huge amounts of cash" the Weekly and the East Bay Express had lost under New Times/VVM control. The trial takes a day off today for Lincoln's Birthday, and will resume on Wednesday.
On Friday, Village Voice Media executive editor Michael Lacey testified in the predatory pricing trial. The Guardian says Lacey "had some trouble answering some key questions" about SF Weekly's ad sales and a 1995 meeting where he met the Weekly staff shortly after purchasing the paper. The Weekly says Lacey's testimony illustrated that his and Bruce Brugmann's "editorial philosophies were worlds apart," and notes that Lacey's testimony showed he is not involved in the business side of VVM's affairs. This is key because of comments he made about being "the only game in town," which the Guardian is using as evidence he wanted to drive them out of business. Patricia Calhoun, editor of Denver's Westword, which New Times bought in 1983, also testified on Friday, and according to the Weekly, she "got on and off the stand in only about twenty minutes, a timely performance that drew appreciative nods from jurors." The trial resumes today.
The Bay Guardian says Sandy Lange provided the jury with a primer on "how predatory pricing by a big chain works." SF Weekly says she crumbled under cross-examination.
The documents in question were held by the Maricopa County Sheriff's Office, the same outfit involved in the secret grand jury kerfuffle that led to the arrests of Village Voice Media executives Jim Larkin and Michael Lacey and, ultimately, to the humiliation of county attorney Andrew Thomas and special prosecutor Dennis Wilenchik. New Times originally sought the documents in May 2004; MCSO released them five months later, after New Times was forced to file suit. On Tuesday, the Arizona Court of Appeals reversed a lower court's ruling, finding that MCSO "wrongfully denied New Times access to public records." The Court of Appeals sent the case back to superior court "for a further determination on the issue of attorney's fees." In the Arizona Republic, the Sheriff's deputy chief admitted that the officer responsible for complying with public-records requests "was truly afraid of the (New Times) reporter, that there was a genuine personal joint vendetta between the two of them."
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