RiseStar
August 12th, 2003, 11:17 AM
DirecTV and the National Rural Telecommunications Cooperative entered into an agreement dismissing claims filed against each other pending before the U.S. District Court in Los Angeles.
The settlement, which also aims to resolve class-action claims filed against DirecTV by NRTC member companies, will not become final until the court conducts a fairness hearing and approves settlement of the class claims, DirecTV said.
Key aspects of the settlement:
*No money damages: The NRTC and its member companies release DirecTV from all financial damage claims.
*DirecTV and the NRTC agreed to an extended term of their deal, to run through June 2011. NRTC members and other companies that distribute DirecTV in a NRTC territory and who agree to settle claims may amend their distribution agreements to take advantage of the new successor term.
*As of June 2011, subscribers in NRTC territories will be transitioned to DirecTV and become DirecTV owned-and-operated customers. DirecTV will pay $150 per subscriber for any transitioned subscriber.
*The parties also agreed that DirecTV retains the right to sell premium services in NRTC territories. NRTC will continue to bill and collect for the services with an increased minimum revenue share, from 10 percent to 15 percent, under the parties existing agreement. The term for the agreement will be extended through June 2011.
In a statement, NRTC said its hopeful all of its DBS participants, even those who are not members of the class, will accept the settlement and resolve any remaining litigation issues. We are pleased that DirecTV was willing to come to the table to negotiate and agree to a fair and equitable settlement with NRTC and its class members, said NRTC President and CEO Bob Phillips.
Said DirecTV President Roxanne Austin, We believe that the terms of this settlement are very reasonable and are pleased that now there is clarity concerning DirecTVs contractual obligations to the NRTC. With this litigation behind us, DirecTV can collaborate with the NRTC on constructive issues designed to grow our respective businesses.
The settlement, which also aims to resolve class-action claims filed against DirecTV by NRTC member companies, will not become final until the court conducts a fairness hearing and approves settlement of the class claims, DirecTV said.
Key aspects of the settlement:
*No money damages: The NRTC and its member companies release DirecTV from all financial damage claims.
*DirecTV and the NRTC agreed to an extended term of their deal, to run through June 2011. NRTC members and other companies that distribute DirecTV in a NRTC territory and who agree to settle claims may amend their distribution agreements to take advantage of the new successor term.
*As of June 2011, subscribers in NRTC territories will be transitioned to DirecTV and become DirecTV owned-and-operated customers. DirecTV will pay $150 per subscriber for any transitioned subscriber.
*The parties also agreed that DirecTV retains the right to sell premium services in NRTC territories. NRTC will continue to bill and collect for the services with an increased minimum revenue share, from 10 percent to 15 percent, under the parties existing agreement. The term for the agreement will be extended through June 2011.
In a statement, NRTC said its hopeful all of its DBS participants, even those who are not members of the class, will accept the settlement and resolve any remaining litigation issues. We are pleased that DirecTV was willing to come to the table to negotiate and agree to a fair and equitable settlement with NRTC and its class members, said NRTC President and CEO Bob Phillips.
Said DirecTV President Roxanne Austin, We believe that the terms of this settlement are very reasonable and are pleased that now there is clarity concerning DirecTVs contractual obligations to the NRTC. With this litigation behind us, DirecTV can collaborate with the NRTC on constructive issues designed to grow our respective businesses.