Dish Network 2010 Annual Report Download - page 137

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DISH NETWORK CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
F-52
Voom
In January 2008, Voom HD Holdings (“Voom”) filed a lawsuit against us in New York Supreme Court,
alleging breach of contract and other claims arising from our termination of the affiliation agreement
governing carriage of certain Voom HD channels on the DISH Network satellite TV service. At that
time, Voom also sought a preliminary injunction to prevent us from terminating the agreement. The
Court denied Voom’s request, finding, among other things, that Voom had not demonstrated that it was
likely to prevail on the merits. In April 2010, we and Voom each filed motions for summary judgment.
Voom later filed two motions seeking discovery sanctions. On November 9, 2010, the Court issued a
decision denying both motions for summary judgment, but granting Voom’s motions for discovery
sanctions. The Court’s decision provides for an adverse inference jury instruction at trial and precludes
our damages expert from testifying at trial. We appealed the grant of Voom’s motion for discovery
sanctions to the New York State Supreme Court, Appellate Division, First Department. On February 15,
2011, the appellate Court granted our motion to stay the trial pending our appeal. Voom is claiming over
$2.5 billion in damages. We intend to vigorously defend this case. We cannot predict with any degree of
certainty the outcome of the suit or determine the extent of any potential liability or damages.
Other
In addition to the above actions, we are subject to various other legal proceedings and claims which arise
in the ordinary course of business, including, among other things, disputes with programmers regarding
fees. In our opinion, the amount of ultimate liability with respect to any of these actions is unlikely to
materially affect our financial position, results of operations or liquidity.
15. Valuation and Qualifying Accounts
Our valuation and qualifying accounts as of December 31, 2010, 2009 and 2008 are as follows:
Allowance for doubtful accounts
Balance at
Beginning
of Year
Char
g
ed to
Costs and
Expenses Deductions
Balance at
End of
Year
For the years ended:
December 31, 2010............................ 16,372$ 115,478$ (102,200)$ 29,650$
December 31, 2009............................ 15,207$ 112,025$ (110,860)$ 16,372$
December 31, 2008............................ 14,019$ 98,629$ (97,441)$ 15,207$
(In thousands)