Judge Rejects Antitrust Case by Newsmax Against Fox

On Friday, a federal judge in Florida dismissed an antitrust lawsuit filed by Newsmax against its competitor, Fox News, citing procedural issues and labeling the complaint as a 'shotgun pleading.'

Judge Aileen Cannon of the U.S. District Court rejected the lawsuit a mere two days after Newsmax initiated the legal action against Fox News and its parent entity, Fox Corporation.

Newsmax, in its 31-page submission, charged that the corporation controlled by the Murdoch family executed an unlawful domination over the 'right-leaning pay TV news market.'

Judge Cannon declared that the lawsuit, which consisted of five claims alleging breaches of federal and state antitrust laws, was a 'shotgun pleading' due to its method of incorporating all previous claims into each subsequent one.

Appointed under the Trump administration, Judge Cannon noted that the most frequent type of 'shotgun' complaint involves numerous claims, with each claim absorbing the preceding allegations.

She emphasized the court's duty to reject such pleadings and mandate a revision. Newsmax was given the opportunity to resubmit a revised complaint by the following Thursday, as long as it aligns with specific guidelines.

Next Steps in Legal Proceedings

A Newsmax representative indicated to Business Insider that the issue is purely technical and they plan to refile the case promptly.

In contrast, a Fox News spokesperson referred Business Insider to a prior statement addressing the lawsuit's filing.

The statement from Fox accused Newsmax of attempting to divert attention from its own market challenges by initiating litigation, as it struggles to draw viewers.

Allegations of Anticompetitive Practices

The crux of Newsmax's legal allegations was that Fox Corp. and Fox News were involved in a 'exclusionary strategy' aimed at consolidating their stronghold in the conservative cable news realm.

It was contended by Newsmax that, absent what it termed Fox's 'anticompetitive tactics,' it would have secured broader pay TV coverage and hence augmented its own market worth.

The suit also claimed that Fox coerces distributors into 'inequitable deals' intended to prevent them from carrying Fox News rivals, including Newsmax itself, or imposes fees if they do carry such competitors.

Earlier this year, Newsmax became a publicly traded entity with a valuation of $1.7 billion, while the market cap of Fox Corp. surpasses $25 billion.