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Heinz, Quaker, Sara Lee Feature in Valassis v. News America Trial

By Jim Edwards | Jun 9, 2009

We’re about 10 days in to the Valassis v. News America trial and BNET hears that evidence from at least three of News America’s clients has been heard in court, along with testimony from Paul “I will destroy you!” Carlucci, the News America CEO who doubles as publisher of the New York Post.

Also testifying was Tom Leprine, a News America exec responsible for pricing policy at the in-store/coupon agency.

Evidence from News America clients Heinz, Quaker, and Sara Lee was heard by the court in form of previously taken deposition testimony. The mere fact that News America’s clients are being dragged into this plays to Valassis’ advantage — clients generally hate it when their agencies’ problems become their problems.

BNET wishes there was more to report but Judge Michael Sapala has imposed a de facto media blackout on the case by banning cameras from his Detroit court. (The remaining Detroit media are tied up with a couple of minor matters regarding Chrysler and General Motors.)

Valassis’ stock has been up recently and the company announced that it is now no longer threatened with delisting by NYSE. (A Morningstar analyst last December said Valassis’ stock was worth $0.)

That news came after Valassis cut a direct mail deal with the Dallas Morning News.

BNET is happy to hear from sources on either side of the case.

Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.

BNET User Analysis

Web Buzz:
  • News America's Carlucci Once Again Accused of Threatening to "Destroy" Floorgraphics

    BNET Advertising - 129 days 22 hours 16 minutes ago

    George Rebh, founder of Floorgraphics, said News America Marketing CEO Paul Carlucci threatened to “destroy” his agency if he competed for clients, a Michigan state court heard. The testimony came in a case where newspaper coupon giant Valassis is trying to prove that News America used illegal monopoly practices against its competitors. It...

  • Was N.Y. Post's Carlucci the Reason for News America Marketing's Settlement With Floorgraphics?

    BNET Advertising - 232 days 23 hours 25 minutes ago

    One of the mysteries from the Floorgraphics v. News America Marketing trial is why the case settled after only a couple of days of testimony. One theory is that it had something to do with Paul Carlucci, the current publisher of The New York Post and the former CEO of News America. (Both are owned by Rupert Murdoch's News Corp.) Two witnesses...

  • News America's Carlucci Admits He's a Fan of "Godfather"; Denies Unannounced Price Rises

    BNET Advertising - 152 days 22 hours ago

    News America Marketing CEO Paul Carlucci talked about his interest in the mafia in a video deposition at a Michigan State court trial in which his company is accused of anticompetitive practices. The court also heard about a memo in which Carlucci discussed raising prices without telling clients to see how much money the company could collect...

  • The Day After: News America CEO Carlucci Finds Options Limited

    BNET Advertising - 120 days 16 hours 14 minutes ago

    News America Marketing CEO Paul “I will destroy you!” Carlucci woke up this morning with a headache: What to do about the $300 million verdict his company lost against rival newspaper coupon agency Valassis. In just seven months, Valassis has gone from a weak competitor whose stock was “worth zero dollars” and was nearly de-listed by the...

  • Cameras Banned at Valassis v. News America Trial; Whistleblower Emmel Also Ruled Out

    BNET Advertising - 179 days 16 hours 9 minutes ago

    The Valassis v. News America Marketing trial, set to open Wednesday in Michigan, will receive almost no coverage in the media thanks to a decision by Wayne County circuit court judge Michael Sapala. A request by the Courtroom View Network to have cameras stream live testimony on the web was denied by the judge. The ruling means that it is almost...

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