In a significant legal triumph, DIRECTV has won a $26.6 million award from the New York Supreme Court in a lawsuit against Nexstar Media Group, stemming from a contentious dispute that began in 2019. The ruling, handed down this week, marks the culmination of a six-year battle over allegations that Nexstar misled DIRECTV in a retransmission deal involving an NBC affiliate, resulting in substantial overpayments by the satellite TV provider.
The case centers on a 2015 broadcast retransmission agreement between DIRECTV and Nexstar, which included the station WHAG-TV (now WDVM-TV) in Hagerstown, Maryland. At the time of the deal, WHAG-TV was an NBC affiliate, commanding premium retransmission fees typical of major network stations. However, DIRECTV alleged that Nexstar concealed a critical fact: NBC had already informed Nexstar that WHAG-TV would lose its affiliation status on July 1, 2016, just one year into the three-year contract term. Despite this knowledge, Nexstar proceeded with the deal, charging DIRECTV rates consistent with a “Big Four” affiliate (ABC, CBS, FOX, or NBC), even as the station transitioned to an independent outlet and later a CW affiliate.
DIRECTV argued that Nexstar’s failure to disclose the impending loss of the NBC affiliation constituted fraudulent inducement and a breach of contract. According to court documents, DIRECTV paid over $10.5 million in “Unlaunched Station Fees” for WHAG-TV during the contract’s remaining term—fees that were unjustified once the station lost its network status. When DIRECTV discovered the change, it demanded Nexstar refund the overpayments, a request Nexstar refused, prompting the 2019 lawsuit.
The New York Supreme Court, in its ruling, sided decisively with DIRECTV. The court found that Nexstar “intentionally concealed” the termination of WHAG-TV’s NBC affiliation, a fact supported by unrebutted testimony from two NBC employees who confirmed Nexstar was aware of the decision well before the contract was signed. The court awarded DIRECTV $26.6 million, a figure that includes the original overpayments, accrued interest, and additional damages tied to the fraudulent inducement claim.
The ruling could have broader implications for retransmission agreements across the industry, where disputes over fees and affiliate status have become increasingly common. For DIRECTV, the $26.6 million award underscores its ongoing efforts to challenge practices by broadcasters.
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