Nielsen Responds to Cumulus Attempt to Uphold Lawsuit: Bankruptcy Doesn’t Change Status

"All along, Cumulus said emergency relief was needed to avert imminent crisis. That premise is gone."

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After filing for bankruptcy, Cumulus Media tried to uphold its restraining order against Nielsen, the ratings company it accused of tying local and national ratings together.

In its filing, Cumulus directly connected its financial troubles to that Nielsen policy, calling the link between local and national ratings a “significant contributing cause” of its pre-packaged Chapter 11 filing.

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Nielsen, however, disagrees.

“All along, Cumulus said emergency relief was needed to avert imminent crisis,” Nielsen lawyers argued in a filing. “That premise is gone. Bankruptcy has now occurred, and a preliminary injunction cannot stop what has already happened.”

Nielsen also noted that a district court already ruled that Cumulus’ “dire financial state is not Nielsen’s problem.”

Additionally, Nielsen’s filing asks the Second Circuit court to overturn the preliminary injunction. The company argues it was forced to sell its data on terms Cumulus dictated — terms it says don’t violate antitrust laws.

The lawsuit between the two companies is currently paused due to Cumulus’ bankruptcy proceedings. Still, the radio company’s expected emergence from Chapter 11 in the coming weeks should pave the way for the legal battle to resume.

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