Judge Dismisses Newsmax’s Antitrust Lawsuit Against Fox News but Permits Amended Complaint
A federal judge in Florida swiftly dismissed Newsmax’s antitrust lawsuit against Fox News one day after its filing, citing procedural flaws. However, the court granted Newsmax permission to submit a revised complaint.
Procedural Issues Lead to Dismissal
U.S. District Judge Aileen Cannon, presiding in the Southern District of Florida, ruled that Newsmax’s initial complaint was an impermissible “shotgun complaint.” The lawsuit contained five counts, four of which incorporated all allegations from the first count, a practice Cannon found improper. She ordered Newsmax to revise the complaint without repeating prior allegations across multiple counts.
The judge’s order set a deadline of next Thursday for Newsmax to file the amended complaint. Cannon warned that failure to comply could lead to dismissal without further notice.
Allegations of Monopoly and Market Suppression
Newsmax’s suit accuses Fox News of leveraging monopoly power to suppress competition within the conservative media sector through intimidation and other tactics. The company seeks a permanent injunction against Fox News’s conduct and damages that CEO Chris Ruddy described as potentially “significant and serious.”
Fox News responded dismissively, stating Newsmax is attempting to use litigation to mask its own failure to attract viewers.
Judge Cannon’s Background
Judge Cannon was appointed by former President Donald Trump and gained national attention for dismissing the criminal case against Trump related to classified documents. Her rulings have been subject to appeals and significant public scrutiny.
Next Steps
Newsmax has indicated that the dismissal was a technical matter and that its legal team is preparing to refile the complaint. The amended lawsuit will be closely watched as it may reshape the competitive dynamics within conservative media outlets.
FinOracleAI — Market View
The dismissal of Newsmax’s lawsuit on procedural grounds is a neutral development for the market, as it does not address the substantive claims of anti-competitive behavior. However, the allowance for an amended complaint signals that litigation risks remain for Fox News, which could weigh on investor sentiment if the case escalates.
Key risks include potential injunctions or damages that could impact Fox News’s operations and market position. Market participants should monitor the amended filing and any subsequent legal developments closely.
Impact: neutral
