Yeah, a $150 million lawsuit tends to concentrate the corporate mind
The McClatchy Company, a news media company that is being sued for defamation by House Intelligence Committee Ranking Member Devin Nunes (R-CA), moved to dismiss the lawsuit in court on Wednesday, but the judge in the case rejected the request — an interim win for Nunes.
McClatchy filed a motion to dismiss Nunes’ complaint, which was filed in Virginia’s Sixteenth Judicial Court, arguing that the Delaware-based company does not fall under the jurisdiction of Virginia because it has no significant business in the state.
However, Judge Cheryl V. Higgins did not grant McClatchy’s motion to dismiss the case but has granted Nunes discovery on the question. That means that McClatchy must prove that it does not have significant ties to Virginia by answering questions and providing information on assertions from Nunes. Higgins said the court may have to hear witness testimony on the question as well.
WASHINGTON — McClatchy, one of the nation’s largest newspaper publishers, filed for bankruptcy protection Thursday, another harbinger of America’s deepening local-news crisis.
The Chapter 11 filing will allow the Sacramento-based company to keep its 30 newspapers afloat while it reorganizes more than $700 million in debt, 60 percent of which would be eliminated. If the plan wins court approval, control of the 163-year-old family publisher would be turned over to hedge fund Chatham Asset Management, its largest creditor. The company has obtained $50 million in financing from Encina Business Credit to maintain operations while it undergoes bankruptcy proceedings.