March 11--Small TV programmer Herring Networks is suing AT, alleging the telecommunications company broke its agreement to carry two of Herring's channels on DirecTV in return for the broadcaster's support of the AT merger.
Herring's lawsuit, which seeks at least $100 million, was filed Wednesday in U.S. District Court in Los Angeles. AT on Friday said the suit had no merit.
The San Diego broadcaster, which has the channels One America News Network and A Wealth of Entertainment, lent support for AT's $49-billion merger last year with DirecTV after it had entered into an agreement for carriage on AT's smaller U-verse TV system. At the time, Herring alleges that AT officials had promised that U-verse "would continue to expand and grow."
But AT has focused more of its energy on DirecTV. The suit contends that AT promised to put Herring's channels on DirecTV in return for Herring's support of AT's acquisition of DirecTV, which made AT the nation's largest pay TV operator.
However, after the merger was complete, Herring contends, AT reneged on its agreement and its channels aren't on DirecTV.
"AT's statements were deceptive," Herring alleges in the 31-page complaint. "Instead of expanding U-verse, AT planned to contract it. AT also hid its plan from regulators during the acquisition approval process. It was not until after governmental agencies approved the DirecTV transaction that AT came clean about its plan to wind down U-Verse in favor of the DirecTV platform."
A Herring representative told the Los Angeles Times that AT should carry the two channels, which combined cost 12 cents a month per subscriber home in carriage fees. The company contends that's a small amount.
"The lawsuit is baseless," AT said in a statement."We have offered to carry both channels on DirecTV at reasonable, market-based terms. This lawsuit is simply a ploy by Herring to negotiate a slanted deal."
Herring is represented by Skip Miller of Miller Barondess.
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