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Court Rejects Arbitron Bid To Block PPM Suit
NEW YORK -- October 27, 2008: The U.S. District Court for the Southern District of New York has granted a motion by New York Attorney General Andrew Cuomo to dismiss Arbitron's bid in federal court for a temporary restraining order and preliminary injunction against Cuomo's office, in favor of the state proceeding filed against Arbitron by Cuomo on October 10.
Cuomo on October 2 sent a letter to Arbitron saying his office would bring suit against the company over alleged deceptive trade practices and commercial fraud statutes. Arbitron then published the commercialized PPM numbers for New York on October 6, two days ahead of schedule, and on the same day asked the District Court for an injunction to block Cuomo from "taking any steps or actions seeking to restrain or prohibit Arbitron from publishing commercially its PPM audience estimates," citing First Amendment principles. Monday's ruling notes that Cuomo at that time agreed not to seek a TRO against Arbitron until it had been heard in state court.
The District Court agreed with Cuomo that his state action take precedence over Arbitron's federal filing, even though Arbitron filed for its TRO before Cuomo sued the company. The ruling also says, "The Attorney General has shown that important state interests are implicated by its state court lawsuit against Arbitron."
The ruling continues, "Its lawsuit seeks to enforce the state laws against discrimination and deceptive practices. The enforcement of these laws has the potential to affect the health of the radio stations serving the minority communities in this state and may prevent data, which the Attorney General contends is unreliable and misleading, from improperly influencing critical decisions affecting businesses operating within the state."
Arbitron's response is here.
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