The Nielsen Company sued for breach of contract

On Behalf of | May 4, 2020 | Business Disputes |

In Pennsylvania and across the U.S., contract litigation can be an avenue for businesses to protect their financial interests. An example of this is the owner of Entertainment Studios, also known as CF Entertainment Inc., who filed a lawsuit against The Nielsen Company for predatory pricing practices.

The lawsuit states that CF Entertainment Inc. agreed to pay The Nielsen Company $41,667 per month for achieving ratings targets for the former company’s current and future cable networks. After CF Entertainment purchased The Weather Channel in 2018, The Nielsen Company requested a contract amendment and changed the price to $475,000 per month. The owner of CF Entertainment argues that this price change by The Nielsen Company represents a breach of contract.

More specifically, the lawsuit alleges that The Nielsen Company is not practicing fair competition policies and is seeking gross enrichment at CF Entertainment’s expense. The attorney for CF Entertainment confirmed that The Nielsen Company has a monopoly on the ratings industry, and it was seeking $30 million in gains from predatory pricing. With limited options, CF Entertainment was forced to wire $2.375 million to The Nielsen Company in late fees due to additional charges from the disputed contract change. The payment amounted to what CF Entertainment considers to be a ransom to keep The Weather Channel on air.

The above example demonstrates the serious financial implications that contract litigation and dispute matters can have for a business. These matters can be related to construction contracts, real estate issues and many other areas. An experienced contract litigation firm may help companies through this process. Litigation can be stressful, so business owners may want legal assistance to ensure that these matters are resolved quickly and fairly.