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A group of state attorneys general and DirecTV have accused Nexstar Media Group of violating a preliminary injunction that pauses its $6.2 billion merger with Tegna.
The plaintiffs sought court intervention after Nexstar appointed its CEO Perry Sook, President Michael Biard, CFO Lee Ann Gilha and General Counsel Elizabeth Ryder and former Nexstar Broadcasting Inc. President Timothy Busch to sit on Tegna's board of directors.
They argued the move enabled Nexstar to "improperly control" Tegna and violated the court's order for the companies to operate independently while their antitrust litigation proceeds.
The motion, which was filed on Wednesday, comes as the group alleged that Nexstar refused to remove the executives from Tegna's board. It also claimed that they refused to turn over documents and respond to its questions about Nexstar's actions.
"This merger would cause incredibly high levels of concentration in local TV markets and cause irreparable harm to local news and consumers who rely on their reporting as a critical source of information," California Attorney General Rob Bonta said in a statement. "The stakes here are high: Further integration is against the court's directive and, if allowed, would kick off Nexstar and Tegna's ability to control and raise prices, fire journalists, and dominate the broadcast media landscape."
In addition to asking a judge to remove the executives from Tegna's board, the motion requested that Nexstar submit monthly reports to the court on its compliance with all parts of the preliminary injunction, provide key Tegna materials to plaintiffs on a monthly basis and establish a fast-track process for plaintiffs to conduct discovery into Nexstar's compliance with the preliminary injunction.
A Nexstar spokesperson told TheWrap it has "scrupulously complied" with the court's hold-separate order and that Tegna continues to operate independently.
"Nexstar has no involvement in TEGNA's retransmission consent negotiations, content decisions, staffing, or other day-to-day operations," the spokesperson added. " Nexstar's executives' service on TEGNA's Board is consistent with the Court's order and is critical to ensuring that Nexstar can continue to satisfy its financial reporting obligations while the hold-separate requirements are in place."
A hearing on the motion is scheduled for Sept. 3 at 2 p.m. PT. Meanwhile, a trial on the Nexstar-Tegna merger is set to begin on July 6, 2027.
The post State AGs, DirecTV Accuse Nexstar of Violating Preliminary Injunction With Tegna Board Appointment appeared first on TheWrap.
