Cablevision 2012 Annual Report Download - page 204

COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-76
Section 1 tying claim and related state common law claims to proceed. Cablevision's answer to the third
amended complaint was filed on February 13, 2012. Discovery is proceeding. The Company believes
that these claims are without merit and intends to defend this lawsuit vigorously, but is unable to predict
the outcome of the lawsuit or reasonably estimate a range of possible loss.
In re Cablevision Consumer Litigation: Following expiration of the affiliation agreements for carriage of
certain Fox broadcast stations and cable networks on October 16, 2010, News Corporation terminated
delivery of the programming feeds to the Company, and as a result, those stations and networks were
unavailable on the Company's cable television systems. On October 30, 2010, the Company and Fox
reached an agreement on new affiliation agreements for these stations and networks, and carriage was
restored. Several purported class action lawsuits were subsequently filed on behalf of the Company's
customers seeking recovery for the lack of Fox programming. Those lawsuits were consolidated in an
action before the U. S. District Court for the Eastern District of New York, and a consolidated complaint
was filed in that court on February 22, 2011. Plaintiffs asserted claims for breach of contract, unjust
enrichment, and consumer fraud, seeking unspecified compensatory damages, punitive damages and
attorneys' fees. On March 28, 2012, the Court ruled on the Company's motion to dismiss, denying the
motion with regard to plaintiffs' breach of contract claim, but granting it with regard to the remaining
claims which were dismissed. On April 16, 2012, plaintiffs filed a second consolidated amended
complaint, which asserts a claim only for breach of contract. The Company's answer was filed on May 2,
2012. On October 10, 2012, plaintiffs filed a motion for class certification. The Company's brief in
opposition to the motion was filed on January 17, 2013. On December 13, 2012, plaintiffs filed a motion
for partial summary judgment. The Company's brief in opposition was filed on January 31, 2013.
Discovery is also proceeding. The Company believes that this claim is without merit and intends to
defend these lawsuits vigorously, but is unable to predict the outcome of these lawsuits or reasonably
estimate a range of possible loss.
Livingston v. Cablevision Systems Corporation, et al.: On January 26, 2012, a securities lawsuit was filed
in the U.S. District Court for the Eastern District of New York against Cablevision and certain current and
former officers, by a Cablevision shareholder, purportedly on behalf of a class of individuals who
purchased Cablevision common stock between February 16, 2011, and October 28, 2011. The complaint
alleges that Cablevision and the individual defendants violated Section 10(b) of the Securities Exchange
Act by allegedly issuing materially false and misleading statements regarding (i) the Company's customer
retention and advertising costs, and (ii) the Company's loss of video customers, especially in the New
York area. The complaint also alleges that the individual defendants violated Section 20(a) of the
Securities Exchange Act for the same alleged conduct. Plaintiff seeks unspecified monetary damages,
attorneys' fees, and equitable relief. On March 26, 2012, the Iron Workers Local No. 25 Pension Fund
and the Alaska Electrical Pension Fund submitted a joint application to serve as lead plaintiffs. The Court
granted the application on April 13, 2012. On June 29, 2012, the lead plaintiffs filed an amended
complaint. On October 11, 2012, the Court issued a ruling permitting the filing of a motion to dismiss
and setting a briefing schedule. The motion to dismiss has been fully briefed, and a decision by the Court
is pending. The Company believes that these claims are without merit, but is unable to predict the
outcome of this lawsuit or reasonably estimate a range of possible loss.
Wandel v. Cablevision Systems Corporation, et al.: On February 24, 2012, a shareholder derivative
complaint was filed in New York Supreme Court, Nassau County, purportedly on behalf of the nominal
defendant Cablevision against all members of Cablevision's Board of Directors. The complaint alleges,
among other things, that the individual defendants violated the fiduciary duties they owe to Cablevision
by allegedly causing or allowing the Company to issue materially false and misleading statements
regarding (i) the Company's customer retention and advertising costs; and (ii) the Company's loss of
video customers, especially in the New York area. The complaint seeks unspecified monetary damages,