In Re: Local TV Advertising Antitrust Litigation

District Court, N.D. Illinois·Decided August 31, 2023·No. 1:18-cv-06785·Unknown

Opinion

18-6785 IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

) ) MDL No. 2867 IN RE: LOCAL TV ADVERTISING ) No. 18 C 6785 ANTITRUST LITIGATION ) ) Judge Virginia M. Kendall )

MEMORANDUM OPINION AND ORDER

PLAINTIFFS’ DISCOVERY MOTION NO. 21 TO COMPEL DEFENDANT NEXSTAR GROUP TO PRODUCE WHITEPAPERS SUBMITTED TO THE UNITED STATES DEPARTMENT OF JUSTICE

Plaintiffs1 in this putative antitrust class action move under Federal Rules of Civil Procedure 26(b) and 37(a) to compel Defendant Nexstar Group2 to produce all whitepapers, including any supporting exhibits, submitted to the United States Department of Justice (“DOJ”) in connection with the DOJ’s review of the Sinclair-Tribune merger (the “Merger Investigation”) and with the DOJ’s investigation of competitively sensitive information exchanged in the broadcast television industry (the “Pacing Investigation”). (Dkt. 977). Plaintiffs also move for costs and fees associated with bringing their Motion. (Id.) For the following reasons, Plaintiffs’ Motion is granted. (Id.) BACKGROUND A. DOJ Investigations

1 “Plaintiffs” refers collectively to Thoughtworx, Inc. d/b/a MCM Services Group; One Source Heating & Cooling LLC; Hunt Adkins, Inc.; and Fish Furniture. (Dkt. 977 at 1 n.1). 2 “Nexstar Group” refers to Dreamcatcher Broadcasting LLC (“Dreamcatcher”), Nexstar Media Group, Inc. (“Nexstar Media”), and Tribune Broadcasting Company, LLC & Tribune Media Company (together, “Tribune”). Nexstar Group acquired Tribune in September 2019. (Dkt. 977 at 1 n.2; Dkt. 555 ¶ 36). In 2017, Sinclair attempted to buy Tribune. (See dkt. 555 ¶¶ 261–62). As part of its investigation into the proposed merger, DOJ served Civil Investigative Demands (“CIDs”) on several defendants in this case, including Sinclair, Tribune, and Nexstar. (Dkt. 977-1 at 102–16, id. at 119–33). The Merger Investigation revealed that Sinclair, Tribune, and other major

broadcasters exchanged information that allegedly violated antitrust laws. (See dkt. 555 ¶¶ 6–10). The Merger Investigation evolved into the DOJ’s Pacing Investigation. (See dkt. 555 ¶¶ 6–10; dkt. 977-1 at 102–16, id. at 119–33). Following the Pacing Investigation, in November 2018, the DOJ filed its original complaint in the District Court for the District of Columbia along with proposed settlements with six defendants, including Dreamcatcher and Tribune.3 (Dkt. 555 ¶ 51). The DOJ later amended its complaint to add Nexstar, and the court entered final judgment against these seven defendants in May 2019. (Id. ¶¶ 52–53). B. Discovery Negotiations between Plaintiffs and Nexstar Group In this action, Plaintiffs sought documents that defendants had submitted to the DOJ in connection with its Merger Investigation and Pacing Investigation.4 (Dkt. 977-1 at 11). Nexstar

Group objected to Plaintiffs’ discovery request as overly broad and unduly burdensome. (Dkt. 977- 1 at 11). Defendants offered to produce a more limited set of documents.5 (Dkt. 977-1 at 12). After

3 See United States v. Sinclair Broadcast Grp., Inc., No. 1:18-cv-2609 (D.D.C.). 4 On December 11, 2020, Plaintiffs served on all Defendants Request for Production No. 1 (“RFP No. 1”), seeking: All Documents You received, exchanged, produced, or created in connection with any investigation by the Federal Trade Commission (“FTC”) or the Antitrust Division of the United States Department of Justice (“DOJ”) (including, without limitation, U.S. v. Sinclair Broadcast Group, Inc., et al., No. 18-cv-2609 (D.D.C.) and the DOJ’s investigation into Sinclair’s proposed merger with Tribune), inclusive of any Civil Investigative Demands or other requests for production, your responses to the same, all related correspondence (inclusive of custodian proposals, search terms, hit reports, and all related matters), any related privilege logs, and any recordings of interviews or depositions of You by the FTC or DOJ in any format (whether by transcription, audio, video, or any combination thereof). (Dkt. 977-1 at 11). 5 Defendants responded on January 22, 2021, that they would produce non-privileged, relevant, responsive, and reasonably accessible Civil Investigative Demand(s) (“CID”), documents produced in response to such CIDs, and documents produced to the Division in response to any request for cooperation under the Final Judgment as to Defendants, dated May four meet-and-confers regarding Plaintiffs’ RFPs, counsel for Plaintiffs memorialized their discussions with Defendants’ counsel, stating: Nexstar confirmed that it produced documents to the [DOJ] related to (1) the Sinclair- Tribune merger review … and (2) the pacing investigation …, which includes any documents pursuant to a cooperation agreement entered into between Nexstar and DOJ. Nexstar represents that Nexstar Media and Tribune produced documents related to the DOJ Pacing Investigation, but that Dreamcatcher did not.

(Dkt. 983-6 at 2). Plaintiffs’ counsel also asked: “Please also confirm whether Nexstar provided interrogatory responses (or written narrative responses) to the DOJ as part of either the Merger Investigation or the Pacing Investigation, and if so, whether Nexstar will produce these responses in this case.” (Dkt. 983-6 at 2). In a letter dated March 17, 2021, Nexstar Group confirmed that it had already given Plaintiffs: (1) the DOJ’s CIDs to Nexstar, Tribune, and Dreamcatcher in connection with the Pacing Investigation; (2) the documents produced to DOJ in response to the pacing CIDs; and (3) the documents produced in response to DOJ’s subsequent requests for cooperation regarding pacing. (Dkt. 983-6 at 10). Regarding the Merger Investigation, counsel for Nexstar Group stated: “Neither Nexstar Media nor Tribune produced any interrogatory responses to the DOJ in connection with the Pacing Investigation or the Merger Investigation.” (Dkt. 983-6 at 11). Counsel for Nexstar Group further clarified that “Nexstar will apply the agreed (or Court-ordered) search methodology to the documents comprising the Tribune Merger Investigation production and will produce the non-privileged documents responsive to Plaintiffs’ requests.” (Dkt. 983-6 at 11). As Plaintiffs noted in their response to the March 17 letter, Nexstar Group’s confirmation about its document production omitted (1) whether Dreamcatcher had produced interrogatory

22, 2019, in U.S. v. Sinclair Broadcast Group Inc., et al., to the extent the foregoing exist and are within Defendants’ possession, custody, and control, and pursuant to the provisions of the Confidentiality Order. (Dkt. 977-1 at 12). responses to the DOJ in connection with either the Merger Investigation or the Pacing Investigation, and (2) whether “interrogatory responses” produced by any entity included “written narrative responses” that Plaintiffs had previously asked about.6 (Dkt. 983-6 at 14). After additional meet-and-confers about this and other discovery issues, Nexstar Group agreed to apply

the parties’ “heavily negotiated search methodology” to identify non-privileged, responsive documents produced to the DOJ in connection with the Merger Investigation. (Dkt. 983-6 at 40; see also id. at 31). Nexstar Group also confirmed that “Dreamcatcher did not produce any interrogatory responses to the DOJ in connection with the Pacing Investigation or the Merger Investigation.” (Id. at 36). Nexstar Group, however, still did not address whether it had provided any “written narrative responses” as opposed to interrogatory responses to CIDs. In August 2021, Plaintiffs twice followed up with Nexstar Group, asking for clarification about the type of responses that Tribune and Dreamcatcher had provided to the DOJ in its Merger Investigation.7 (Dkt. 977-1 at 46–47).

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In Re: Local TV Advertising Antitrust Litigation, (N.D. Ill. 2023).

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