Court Grants TRO to Source in Antitrust Action Against Magazine Publishers and Distributors; Time Agrees to Settlement

Court Grants TRO to Source in Antitrust Action Against Magazine Publishers and Distributors; Time Agrees to Settlement

On February 11, 2009, U.S. District Judge Paul A. Crotty granted a temporary restraining order (TRO) to Kasowitz clients Source Interlink Distribution, L.L.C. and Source Interlink Companies, Inc. ("Source"), ordering the defendant magazine publishers and their national distributors to resume supplying magazines to Source, a magazine wholesaler whom the defendants had cut off from magazine supply on February 2, 2009.  In the action commenced February 9, 2009 in the U.S. District Court for the Southern District of New York, Source alleges that the defendants devised a collusive anti-competitive scheme to destroy Source’s business so that they could monopolize and control the single-issue magazine wholesale market.  The Court scheduled a preliminary injunction hearing for February 23.  On February 19, magazine publisher Time, Inc. and its national distributor Time/Warner Retail Sales & Marketing agreed to settle the action and to enter into a multi-year supply agreement with Source securing Source's access to Time, Inc. products.  The action is proceeding against the other eight defendants.  Kasowitz partners Marc Kasowitz, Daniel Benson and Hector Torres are leading Source's representation.