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News America Marketing Settles With Insignia Systems, Inc. for $125 Million
Feb 09, 2011 (04:02 PM EST)
Companies enter into exclusive 10-year business agreement
NEW YORK, Feb. 9, 2011 /PRNewswire/ -- News America Marketing announced today it has settled the lawsuit brought against it by Insignia Systems, Inc. Under the terms of the settlement, which includes no admission of liability, News America Marketing will pay Insignia $125 million. In addition, Insignia will pay News America Marketing $4 million in relation to a 10-year exclusive business agreement between the companies. Insignia has dismissed its suit against News America Marketing with prejudice.
"We view this settlement as a prudent business decision for News America Marketing and are pleased it includes a 10-year exclusive agreement with Insignia that has the potential to be very profitable for both companies," commented Chris Mixson, President of News America Marketing. "This new business relationship will expand the superior consumer marketing options we offer our customers as we continue to provide them with access to our exceptional retail distribution network and field staff."
News America Marketing®, a division of News Corporation, is the premier single-source provider of consumer marketing services in the U.S. and Canada. The company's product portfolio, marketed under the SmartSource® brand name, consists of the first branded free-standing insert, known as SmartSource Magazine®, various in-store marketing products, merchandising services, database marketing tools and online promotions. These products and services allow marketers to deliver a brand message millions of consumers each month via a network of 1,600+ newspapers* and over 55,000 supermarket, drug, office, mass merchandisers and dollar-store locations across the country, including Kroger, Safeway, Publix, CVS, Rite Aid, Walgreens, Staples, Family Dollar and Dollar General*.
*As of October 2010
SOURCE News America Marketing