The CA Supreme Court declined to review the $21 million damage award a lower court had ordered the SF Weekly to pay its rival, the SF Bay Guardian, in 2008. The Bay Guardian successfully argued that the Weekly had slashed advertising prices to drive the Bay Guardian out of business. Reportedly, management of the papers are now trying to negotiate a settlement. Bruce Brugmann, the Publisher of the San Francisco Bay Guardian is a member of the FAC Board of Directors.
The Associated Press
Wednesday, November 24, 2010; 12:09 PM
SAN FRANCISCO — California’s Supreme Court has declined to review a $21 million damage award against a San Francisco newspaper accused of slashing advertising prices to drive a rival publication out of business.
Only one of the court’s seven justices voted in favor of hearing the appeal by SF Weekly – far short of the majority needed.
A San Francisco judge awarded SF Weekly’s rival, the Bay Guardian, $21 million in 2008 after a jury ruled that SF Weekly had engaged in predatory pricing that cost the Bay Guardian revenue.
SF Weekly says its low-cost ads reflected fair competition and did not violate antitrust laws.
The San Francisco Chronicle reports that attorneys for the newspapers declined to comment on a possible settlement the two sides are negotiating.