A federal judge has put the brakes on the antitrust lawsuit between Cumulus Media and Nielsen after the broadcaster filed for Chapter 11 bankruptcy protection — temporarily freezing one of radio’s most closely watched legal battles.
U.S. District Judge Jeannette Vargas issued the order Wednesday, ruling that the case must be paused under federal bankruptcy law, which automatically stays most legal actions involving the debtor. The freeze applies to claims Cumulus brought against Nielsen as well.
The two-page order keeps the stay in place until the bankruptcy court lifts the protection or it expires under bankruptcy rules. Vargas also directed both companies to submit a joint status update by June 9, with additional reports due every 90 days.
Cumulus filed the original lawsuit last October, accusing Nielsen of antitrust violations — specifically, tying access to national radio ratings data to the purchase of local market ratings. Nielsen has denied those claims and fired back with counterclaims, alleging Cumulus shared confidential ratings data with competing measurement firm Eastlan.
Neither dispute gets resolved here — they’re simply on hold while the bankruptcy proceeds.
A separate fight between the two companies in the U.S. Court of Appeals for the Second Circuit — involving a temporary injunction tied to the case — hasn’t been officially paused yet, but it’s expected to follow the same path.
The news in the trial comes as Cumulus has reached an agreement with lenders to use the Chapter 11 process to wipe out roughly $600 million in debt. Debtholders will exchange what they’re owed for equity in the company, which will go private as part of the restructuring.
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