Nexstar Accused of Violating Injunction by Appointing Tegna Board

A coalition of 13 state attorneys general, alongside DirecTV, has accused Nexstar Media Group of violating a federal court injunction. The accusation, made on Wednesday, centers on Nexstar's appointment of board members to Tegna Inc. This action allegedly breaches an April court order that mandated both TV station groups halt their integration and maintain independent operations while awaiting the resolution of an ongoing antitrust trial.

The injunction, issued by the U.S. District Court for the Eastern District of Virginia, was designed to preserve the status quo between Nexstar and Tegna. The companies had agreed to a merger in February 2023, a deal that subsequently drew scrutiny from antitrust regulators. The attorneys general and DirecTV contend that Nexstar's recent board appointments undermine the spirit and letter of the injunction, suggesting an attempt to consolidate control over Tegna before the antitrust review is complete.

DirecTV, a major distributor of Nexstar and Tegna content, has expressed concerns that the alleged violation could prejudice the antitrust proceedings. The Department of Justice had previously sued to block Nexstar's proposed $6.4 billion acquisition of Tegna, citing potential harm to competition and consumers. The court's injunction was a critical step in allowing the legal process to unfold without the companies further merging their operations.

Representatives for Nexstar have not yet issued a formal response to the latest accusations. The outcome of this legal challenge could have significant implications for the future of the proposed merger and the broader landscape of local television broadcasting in the United States. The attorneys general involved represent states including California, New York, and Pennsylvania, highlighting the widespread concern over the potential anticompetitive effects of the Nexstar-Tegna integration.