Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 1 of 21 Page ID #:1 1 2 3 4 5 6 10 HYDE & SWIGART Joshua B. Swigart, Esq. (SBN: 225557) josh@westcoastlitigation.com 2221 Camino Del Rio South, Suite 101 San Diego, CA 92108 Telephone: (619) 233-7770 Facsimile: (619) 297-1022 11 [Additional Counsel for Plaintiff on Signature Page] 7 8 9 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 KAZEROUNI LAW GROUP, APC Abbas Kazerounian, Esq. (SBN: 249203) ak@kazlg.com 245 Fischer Avenue, Unit D1 Costa Mesa, CA 92626 Telephone: (800) 400-6808 Facsimile: (800) 520-5523 12 13 Attorneys for Plaintiff, Thomas Abrahamian 14 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA 15 16 17 18 THOMAS ABRAHAMIAN, INDIVIDUALLY AND ON BEHALF OF ALL OTHERS SIMILARLY SITUATED, 19 Plaintiff, 20 v. 21 22 23 24 25 NATIONAL FOOTBALL LEAGUE, INC.; NFL ENTERPRISES LLC; DIRECTV, LLC; DIRECTV SPORTS NETWORKS LLC Case No.: CLASS ACTION COMPLAINT FOR DAMAGES, RESTITUTION AND INJUNCTIVE RELIEF FOR VIOLATIONS OF: 1.) SECTION 1 OF THE SHERMAN ACT, 15 U.S.C. § 1 2.) SECTION 2 OF THE SHERMAN ACT, 15 U.S.C. § 2 JURY TRIAL DEMANDED 26 Defendants. 27 28 COMPLAINT PAGE 1 OF 21 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 2 of 21 Page ID #:2 1 INTRODUCTION 2 1. The National Football League (“NFL” or “League”) is comprised of thirty- 3 two separately owned and operated major league men’s professional football 4 clubs in the United States. The NFL member clubs have structured their 5 governance to permit major decisions regarding on-field sporting competition 6 and off-field business competition to be made by the team owners 7 themselves. In so doing, the owners act in their own economic self-interest, 8 including entering into a series of agreements that eliminate, restrict, and 9 prevent off-field competition. These anticompetitive agreements go far 10 beyond any cooperation reasonably necessary to provide major league men’s 11 professional football contests that increase fan appeal or respond to consumer 12 preferences. 13 2. This action challenges, and seeks to remedy, the Defendants’ agreements to 14 eliminate competition in the distribution of live men’s football games over 15 television. 16 competition by agreeing to divide the live-game video presentation market 17 into exclusive territories, which are protected by anti-competitive blackouts. 18 Not only are such agreements not necessary to producing football contests, 19 they are directed at reducing competition in the live-game video presentation 20 market, involving and protecting third parties who operate only in that 21 separate market. The Defendants have accomplished this elimination of 22 3. In American Needle, Inc. v. National Football League, 130 S. Ct. 2201 23 (2010), the United States Supreme Court unanimously rejected the NFL’s 24 claim that an agreement regarding the joint marketing of club-owned 25 intellectual property was the decision of a “single entity” – the league – not 26 subject to section 1 of the Sherman Act. The Court reaffirmed lower court 27 decisions that sports leagues are subject to the antitrust laws and that league 28 owners must refrain from agreements that unreasonably restrain trade. The COMPLAINT PAGE 2 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 3 of 21 Page ID #:3 1 Court also reaffirmed its own decision in NCAA v. Board of Regents, 468 2 U.S. 85 (1984), which held that the hallmark of an unreasonable restraint is 3 one that raises price, lowers output, or renders output unresponsive to 4 consumer preference. 5 precedents that recognize that sports leagues are subject to the antitrust laws. 6 Indeed, the United States District Court for the Eastern District of 7 Pennsylvania found several decades ago that television blackout agreements 8 of the very kind at issue in this case amount to “an unreasonable and illegal 9 restraint of trade.” United States v. Nat’l Football League, 116 F. Supp. 319, K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 10 The Court’s decision extended a long line of 327 (E.D. Pa. 1953). 11 4. Despite these clear precedents, the NFL teams continue to agree to divide the 12 live-game video presentation market by assigning an exclusive territory to 13 each team and its television partners. 14 anticompetitive protections in its own home market, the team and its partners 15 expressly agree not to compete in the other teams’ exclusive territories. The 16 stated purpose of these policies is to create regional monopolies that protect 17 the partners from competition in their respective local areas. In exchange for being granted 18 5. The only way consumers can watch video presentations of other teams is 19 through an exclusive “out-of-market” package known as NFL Sunday Ticket, 20 which is distributed only through DirecTV. 21 6. In addition, the Defendants have colluded to sell this “out of market” package 22 only through the League. The League Defendants are then able to exploit 23 their illegal monopoly by charging supra-competitive prices. As a result of 24 this monopoly, moreover, the League is able to require purchasers of NFL 25 Sunday Ticket to buy all “out-of-market” games of all the League’s teams 26 even if the fan is only interested in a particular team or a particular game. 27 Thus, a Cleveland Browns fan living in California cannot watch the Browns 28 play, except occasional games on network television, unless he purchases the COMPLAINT PAGE 3 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 4 of 21 Page ID #:4 1 2 7. As one set of commentators has put it, “Absent the exclusive territorial 3 arrangements agreed to by league owners, individual teams would…arrange 4 for their own games to be available out-of-market…Fans wishing to see only 5 their favorite team now pay for more games than they want, so sports leagues 6 are currently using their monopoly power to effectuate a huge wealth 7 transfer. 8 willing to pay a more modest sum for their favorite teams’ games only. As to 9 these fans, the current scheme reduces output.” Stephen F. Ross & Stefan 10 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 entire package of League games from NFL Sunday Ticket. Another significant group of less fanatic consumers would be Szymanski, Fans of the World Unite! (Stanford Univ. 2008). 11 8. These “exclusive” agreements and other competitive restraints are not 12 reasonably necessary to maintain a level of competitive balance within the 13 League that fans prefer, or to maintain the viability of franchises. To the 14 extent that competition among teams for television rights would result in 15 revenue disparities that preclude a fan-optimal level of competitive balance, 16 agreements that require revenue sharing, if set at levels that do not restrict 17 output, is an obvious and well-recognized less restrictive alternative. 18 9. Plaintiff is an individual who was, and continues to be, harmed by the 19 Defendants’ anti-competitive agreements. Plaintiff purchased an “out-of- 20 market” package that is overpriced because of these unlawful agreements. 21 Plaintiff seeks to restore off-field competition among and between the teams 22 and their partners by ending the Defendants’ collusive distribution 23 agreements. 24 JURISDICTION AND VENUE 25 10. Plaintiffs bring this action pursuant to Section 16 of the Clayton Act, 15 26 U.S.C. §§ 15 and 26, for violation of sections 1 and 2 of the Sherman Act, 15 27 U.S.C. §§ 1, 2. This Court has subject matter jurisdiction over that claim 28 pursuant to 28 U.S.C. §§ 1331 and 1337. COMPLAINT PAGE 4 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 5 of 21 Page ID #:5 1 2 11. Venue is proper in the United States District Court, Central District of California pursuant to 28 U.S.C. § 1391 for the following reasons: (i) 3 California which is within this judicial district; 4 (ii) 5 The conduct complained of herein occurred within this judicial 6 district as Plaintiff purchased NFL Sunday Ticket through 7 DirecTV in this district; (iii) 8 Defendants conducted and do substantial business in the County of Los Angeles, State of California; and 9 (iv) 10 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 Plaintiff resides in the County of Los Angeles, State of Defendants are subject to personal jurisdiction in this district. 11 PARTIES 12 12. Plaintiff is, and at all times mentioned herein is, an individual citizen and 13 resident of the County of Los Angeles, State of California. Plaintiff 14 subscribed to NFL Sunday Ticket in July 2013, which he received through 15 DirecTV satellite service. His DirecTV package also included other channels 16 carrying live professional football games not available on a sponsored 17 telecast. Plaintiff’s favorite football team is the New England Patriots and he 18 would prefer not to be required to purchase a full “out-of-market” package to 19 get New England Patriots games. Plaintiff was charged supra-competitive 20 prices for his service due to Defendants’ conduct. 21 A. The League Defendants 22 13. Defendant National Football League, Inc. is an unincorporated association of 23 the thirty-two major league men’s professional football teams in the United 24 States. Its headquarters are located at 345 Park Avenue, 7th Floor, New York, 25 New York. 26 14. Defendant NFL Enterprises LLC is a Delaware limited liability company with 27 its principal place of business at 280 Park Avenue, 15th Floor, New York, New 28 York. COMPLAINT PAGE 5 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 6 of 21 Page ID #:6 1 2 3 B. The NFL Member Club Defendants 15. The member clubs of the NFLthat are named as defendants are: a. Arizona Cardinals Football Club LLC is a Delaware limited liability company located at 8701 South Hardy Drive, Tempe, Arizona. 4 5 b. The Chicago Bears Football Club, Inc. is a Delaware corporation located at 1000 Football Drive, Lake Forest, Illinois. 6 7 c. Green Bay Packers, Inc. is a Wisconsin corporation located at 1265 Lombardi Avenue, Green Bay, Wisconsin. 8 9 d. New York Football Giants, Inc. is a New York corporation located at Giants Stadium, 1925 Giants Drive, East Rutherford, New Jersey. 10 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 11 e. The Detroit Lions, Inc. is a Michigan corporation located at 222 Republic Drive, Allen Park, Michigan. 12 13 f. Houston NFL Holdings, LP (d/b/a “The Houston Texans LP”) is a 14 Delaware limited partnership located at Two NRG Park, Houston, 15 Texas. 16 17 C. Other NFL Member Clubs a. Pro-Football, Inc. (d/b/a/ “The Washington Redskins”) is a Maryland corporation located at 21300 Redskin Park Drive, Ashburn, Virginia. 18 19 b. Philadelphia Eagles, LLC, is a Pennsylvania limited liability company 20 located at NovaCare Complex, One NovaCare Way, Philadelphia, 21 Pennsylvania. 22 c. Pittsburgh Steelers Sports, Inc., is a Pennsylvania corporation located at 3400 South Water Street, Pittsburgh, Pennsylvania. 23 24 d. The St. Louis Rams, LLC is a Delaware limited liability company located at One Rams Way, St. Louis, Missouri. 25 26 e. Forty Niners Football Company LLC is a Delaware limited liability 27 company located at 4949 Centennial Boulevard, Santa Clara, 28 California. COMPLAINT PAGE 6 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 7 of 21 Page ID #:7 1 f. Cleveland Browns, LLC is an Ohio limited liability company located at 76 Lou Groza Boulevard, Berea, Ohio. 2 3 g. Indianapolis Colts, Inc. is a Delaware corporation located at 7001 West 56th Street, Indianapolis, Indiana. 4 5 h. Dallas Cowboys Football Club Ltd. is a Texas limited partnership located at One Cowboys Parkway, Irving, Texas. 6 7 i. Kansas City Chiefs Football Club, Inc., is a Texas corporation located at One Arrowhead Drive, Kansas City, Missouri. K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 8 9 j. Chargers Football Company, LLC (d/b/a “San Diego Chargers”) is a 10 California limited liability company located at 4020 Murphy Canyon, 11 San Diego, California. 12 k. PDB Sports, Ltd. (d/b/a “Denver Broncos Football Club”) is a 13 Colorado limited partnership located at 13655 Broncos Parkway, 14 Englewood, Colorado. 15 l. New York Jets LLC is a Delaware limited liability company located at 50 West 57th, 2nd Floor, New York, New York. 16 17 m. New England Patriots LP is a Delaware limited partnership located at One Patriot Place, Foxborough, Massachusetts. 18 19 n. The Oakland Raiders is a California limited partnership located at 1220 Harbor Bay Parkway, Alameda, California. 20 21 o. Tennessee Football, Inc. (d/b/a “Tennessee Titans”) is a Delaware 22 corporation located at 460 Great Circle Road, Nashville, Tennessee. 23 p. Buffalo Bills, LLC, is a Delaware limited liability company located at One Bills Drive, Orchard Park, New York. 24 25 q. Minnesota Vikings Football, LLC is a Delaware limited liability company located at 9520 Viking Drive, Eden Prairie, Minnesota. 26 27 r. Atlanta Falcons Football Club, LLC is a Georgia limited liability company located at 4040 Falcon Parkway, Flowery Branch, Georgia. 28 COMPLAINT PAGE 7 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 8 of 21 Page ID #:8 1 s. Miami Dolphins Ltd. is a Florida limited partnership located at 347 Don Shula Drive, Miami Gardens, Florida. 2 3 t. New Orleans Louisiana Saints, L.L.C. is a Texas limited liability company located at 5800 Airline Drive, Metairie, Louisiana. 4 5 u. Cincinnati Bengals, Inc., is an Ohio corporation located at One Paul Brown Stadium, Cincinnati, Ohio. K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 6 7 v. Football Northwest LLC (d/b/a “Seattle Seahawks”) is a Washington 8 limited liability company located at 12 Seahawks Way, Renton, 9 Washington. 10 w. Buccaneers Limited Partnership (d/b/a “Tampa Bay Buccaneers”) is a 11 Delaware limited partnership located at One Buccaneer Place, Tampa, 12 Florida 13 x. Panthers Football, LLC (d/b/a “Carolina Panthers”) is a North 14 Carolina limited liability company located at 800 South Mint Street, 15 Charlotte, North Carolina. 16 y. Jacksonville Jaguars, Ltd. is a Florida limited partnership located at 1 Everbank Field Drive, Jacksonville, Florida. 17 18 z. Baltimore Ravens Limited Partnership is a Maryland limited partnership located at 1101 Russell Street, Baltimore, Maryland. 19 20 D. The Television Defendants 21 16. Defendant Directv, LLC, is a Delaware corporation whose principal place of 22 business is 2230 East Imperial Highway, El Segundo, California. Directv and 23 its subsidiaries provide satellite television service throughout the United 24 States. 25 17. Defendant Directv Sports Networks LLC, a wholly owned subsidiary 26 controlled by Directv, is a Delaware limited liability company, whose 27 principal place of business is 2230 East Imperial Highway, El Segundo, 28 California. COMPLAINT PAGE 8 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 9 of 21 Page ID #:9 FACTUAL ALLEGATIONS 1 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 2 A. The Anticompetitive Exclusive License Agreements 3 18. It has long been recognized that the NFL’s teams, like the teams of all 4 professional sports leagues, must cooperate to define, schedule, and produce 5 league contests. That limited cooperation is consistent with, and permissible 6 under, the antitrust laws. 7 businesses with separate owners. They retain significant autonomy and seek 8 their own profits. Thus, the teams compete in business matters that are 9 separate and distinct from the facilitation of football games. But the teams continue to exist as separate 10 19. Pursuant to a series of agreements between and among Defendants, the 11 League has obtained centralized control over distribution of live video 12 programming of NFL games. As described more fully below, as a result of 13 these agreements, the teams have agreed not to compete in business matters 14 related to the video presentation of live major league men’s professional 15 football games. 16 20. The majority of NFL football games are televised pursuant to contracts 17 entered into by individual teams with separate entities, primarily regional 18 sports networks (“RSNs”). 19 21. A smaller number of presentations are produced pursuant to national 20 agreements between the League and various national networks, including 21 CBS, FOX, NBC, and ESPN. The League also owns its own channel, the 22 NFL Network, which televises nationally through certain cable and satellite 23 providers. 24 1. Regional Blackout System 25 22. At the core of Defendants’ restraint of competition in the video programming 26 market are the regional blackout agreements. The result of these agreements 27 is a classic, horizontal, geographical market division. In the absence of a 28 separate out-of-market package or a national telecast, a consumer of video COMPLAINT PAGE 9 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 10 of 21 Page ID #:10 1 presentations of live major league football games is required to purchase the 2 video presentations provided by the consumers’ local team and its television 3 partner. 4 5 23. Defendant DirecTV has joined the conspiracy by agreeing to enforce and maintain these anticompetitive restrictions. 6 24. In the absence of these restrictions, fans would have access to live video from 7 teams through the United States. The availability of multiple sources of 8 major league professional football programming would result in competition 9 among the Defendants, which would lower prices and increase choice for 10 consumers. 2. Implementation of the Blackout System Through Agreements K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 11 Restraining Competition Among Sports Networks 12 13 25. The teams implement their system of exclusive territories through a system of 14 agreements with regional networks. These agreements require the networks 15 to agree not to compete with other regional networks in the presentation of 16 NFL football games. 17 26. The networks (and their corporate parents) agree to these requirements 18 knowing that other networks must agree not to compete in their territories. 19 The result is a horizontal division of the market that is enforced by the 20 horizontal agreement between the Defendants. 21 27. In each case, the local television network (and the entity that controls that 22 network) agrees with the League and teams that it will not permit its 23 presentations of the games to be shown in areas outside of its exclusive 24 territory, knowing that other networks will likewise agree not to compete in 25 their exclusive home territory. The League and the network also agree that 26 the network will not carry games of other teams outside their territory. 27 28. Regional Sports Networks (RSNs) enter agreements with multichannel video 28 programming distributors (MVPDs), like Defendant DirecTV, to implement COMPLAINT PAGE 10 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 11 of 21 Page ID #:11 1 the blackouts. 2 “foreign” RSN entry and other forms of competition. 3 29. The result is that each local network has a monopoly on live televised 4 football games in its territory. In certain cases, the outer areas of a team’s 5 territory may overlap with another team’s or teams’ territories, permitting a 6 viewer to watch either team’s games, if they are available, and subjecting the 7 viewer to local blackouts of all such teams’ games. 8 9 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 But for these agreements, the MVPDs would facilitate 30. These express restrictions on competition have made local sports networks extremely valuable. The Federal Communications Commission has 10 repeatedly described RSNs as the clearest example of “must-have” channels 11 because of their exclusive control of sports programming. See, e.g., In re 12 AT&T Servs., Inc. FCC 11-168, 2011 WL 5534853, *3 (Nov. 10, 2011). In 13 holding FCC rules designed to ensure that RSNs are not used to unfairly 14 harm competition in the MVPD market, the Court of Appeals for the District 15 of Columbia Circuit agreed that this control of sports programming made 16 RSNs “ ‘must have’ and nonreplicable.” Cablevision Sys. Corp. v. FCC, 649 17 F.3d 695, 702 (D.C. Cir. 2011). 18 31. These restrictions have the purpose and effect of creating a series of regional 19 monopolies in order to increase the price that can be charged by the teams, 20 the television networks, and television distributors like DirecTV. Plaintiff 21 and all purchasers of video programming that include these networks 22 consequently pay higher prices for television services that include 23 presentations of major league professional football games. 24 B. “Out-of-Market” Packages 25 32. For a consumer to obtain games that are not available through a local cable or 26 over-the-air, there is only one option which, as a consequence of agreements 27 by and among the teams, is controlled by the League. NFL Sunday Ticket is 28 such a service that is available exclusively through DirecTV. COMPLAINT PAGE 11 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 12 of 21 Page ID #:12 1 33. The NFL defines this product as an “out-of-market” package, and games 2 from outside of a protected territory as “out-of-market” games. “In-market” 3 and “out-of-market” are terms defined by reference to the anticompetitive 4 geographical restrictions imposed by Defendants and their co-conspirators. 5 34. NFL Sunday Ticket is available by satellite exclusively through DirecTV. K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 6 The price for the service, as of June 2015, is $251.94 for the season. 7 35. NFL Sunday Ticket games involving a team whose exclusive territory 8 encompasses the viewer’s location are blacked out from Sunday Ticket, 9 regardless of whether the game is being held locally, and regardless of 10 whether the game is available to the viewer through a different network. The 11 sole reason for this restriction is the interference with competition. 12 36. The League and DirecTV offer NFL Sunday Ticket only as all-or-nothing. 13 Purchasers of NFL Sunday Ticket must buy all out-of-market games for all 14 teams even if they are only interested in watching the games of a particular 15 team. Likewise, consumers must buy the complete season of games and may 16 not purchase individual games. 17 37. Because the League is the only source of such programming, it is able to 18 charge monopoly pricing and limit the choices available to consumers. The 19 inevitable consequence is higher pricing, lower quality, less choice to 20 consumers, and lower output. 21 C. The Agreements Have Restrained Horizontal Competition and Have 22 Had Anticompetitive Effects and Led to Consumer Harm 23 38. The above-described agreements have restrained horizontal competition 24 between and among the NFL teams, together with their media partners, and 25 the NFL, including in the commercial exploitation of video presentations of 26 live games where the teams’ media partners could, and would, compete with 27 each other and with the NFL. In particular, in the absence of the exclusive 28 licenses and other competitive restraints, NFL teams and their partners would COMPLAINT PAGE 12 OF 21 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 13 of 21 Page ID #:13 1 compete with each other in the presentation of their teams’ games to a much 2 greater extent than the limited opportunities that are now available. 3 39. The above-described agreements have adversely affected and substantially 4 lessened competition in the relevant markets. Output of presentations of live 5 NFL games, as well as output of game highlights and footage, is lower, and 6 prices are higher, than they would be in the absence of the agreements to 7 restrict competition. 8 40. Competition by individual teams acting independently to exploit the 9 distribution of their teams’ games would produce consumer benefits, such as 10 an increase in the availability of live video presentations over a wider range 11 of media, including cable, the internet, and wireless devices. 12 41. The above-described agreements do not concern matters of league structure 13 and do not concern any unique characteristic or need of football exhibitions. 14 These anticompetitive restraints are not necessary to the exhibition of football 15 and are not integral to the sport itself. 16 42. There are no legitimate, pro-competitive justifications for these exclusive 17 license agreements and other competitive restraints, which have harmed 18 consumers in various ways, including in the above-described ways. 19 D. Plaintiff Has Suffered Antitrust Injury 20 43. Plaintiff has been overcharged for the video presentation of live NFL games. 21 44. Subscribers to pay television service with standard channel packages have 22 been forced and will continue to be forced to overpay for their television 23 service because of the inclusion of sports programming that commands 24 supra-competitive pricing. Subscribers suffer this overpayment even if they 25 do not watch sports programming. 26 45. Subscribers to NFL Sunday Ticket have been forced and will continue to be 27 forced to overpay for “out-of-market” games because of the lack of 28 competition created by the geographical exclusivity system. COMPLAINT PAGE 13 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 14 of 21 Page ID #:14 1 46. Individual teams and their media partners are restrained from distributing 2 their games through cable, satellite, Internet, and otherwise in ways that they 3 may determine are best suited to reaching their respective and potential fan 4 bases throughout the country and abroad. CLASS ACTION ALLEGATIONS 5 6 7 8 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 9 47. Plaintiff and the members of the Class have all suffered injury in fact as a result of the Defendants’ conduct. 48. The “Class Period” means four years prior to filing of the Complaint in this action. 10 49. Plaintiff brings this lawsuit on behalf of himself and other consumers 11 similarly situated throughout the United States under the provisions of Rule 12 23(a), (b)(2) and (b)(3) of the Federal Rules of Civil Procedure. Subject to 13 additional information obtained through further investigation and/or 14 discovery, the proposed “Class” consists of: “All persons who purchased television service from DirecTV, or its subsidiaries, that included channels carrying video presentations of live NFL football games that were not available through a sponsored telecast, within four years prior to the filing of the Complaint in this action and until the effects of the anti-competitive conduct end.” 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Excluded from the Class are Defendants and any of their officers, directors, and employees. Plaintiff reserves the right to modify or amend the Class definition before the Court determines whether certification is appropriate. 50. Ascertainability. The members of the Class are readily ascertainable from Defendants’ records and/or Defendants’ agent’s records regarding DirecTV subscriptions, as well as through public notice. 51. Numerosity. The members of the Class are so numerous that their individual joinder is impracticable. Plaintiff is informed and believes, and on that basis alleges, that the proposed class consists of hundreds of thousands of members, COMPLAINT PAGE 14 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 15 of 21 Page ID #:15 1 if not millions. 2 52. Existence and Predominance of Common Questions of Law and Fact. 3 Common questions of law and fact exist as to all members of the Class 4 predominate over any questions affecting only individual Class members. All 5 members of the Class have been subject to the same conduct. The common 6 legal and factual questions include, but are not limited to, the following: 7 (a) Whether Defendants and their co-conspirators engaged in a 8 contract, combination, or conspiracy among themselves to fix, 9 raise, maintain or stabilize prices of NFL Sunday Ticket by preventing any competitor from offering competing products; K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 10 11 (b) The effect of Defendants’ conspiracy on the prices of NFL 12 Sunday Ticket in the United States during the class period; 13 (c) The effect of Defendants’ conspiracy on the prices of pay 14 television packages that include NFL football games that are 15 not available on a sponsored telecast; 16 (d) The identity of the participants of the conspiracy; 17 (e) The duration of the conspiracy alleged herein and the acts 18 performed by Defendants and their co-conspirators in 19 furtherance of the conspiracy; (f) Whether the alleged conspiracy violated Section 1 of the 20 Sherman Act, 15 U.S.C. § 1; 21 (g) Whether the alleged conspiracy violated Section 2 of the 22 Sherman Act, 15 U.S.C. § 2; 23 24 (h) Whether the conduct of Defendants and their co-conspirators, 25 as alleged in this Complaint, caused injury to the Plaintiff and 26 members of the Class; and 27 (i) The appropriate class-wide measure of damages. 28 53. Typicality. Plaintiff’s claims are typical of the claims of the members of the COMPLAINT PAGE 15 OF 21 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 16 of 21 Page ID #:16 1 Class in that Plaintiff is a member of the Class that Plaintiff seek to represent. 2 Plaintiff, like members of the proposed Class, was a subscriber to pay 3 television service provided by DirecTV, which included channels carrying 4 NFL football games that are not available on a sponsored telecast. Plaintiff 5 was a subscriber to NFL Sunday Ticket as part of this service. Plaintiff is 6 advancing the same claims and legal theories on behalf of himself and all 7 absent members of the Class. Defendants have no defenses unique to the 8 Plaintiff. 9 54. Adequacy of Representation. Plaintiff will fairly and adequately protect the 10 interests of the members of the Class. Plaintiff has retained counsel 11 experienced in consumer protection law, including class actions. Plaintiff has 12 no adverse or antagonistic interest to those in the Class, and will fairly and 13 adequately protect the interests of the Class. Plaintiff’s attorneys are aware of 14 no interests adverse or antagonistic to those of Plaintiff and proposed Class. 15 55. Superiority. A class action is superior to all other available means for the fair 16 and efficient adjudication of this controversy. Individualized litigation would 17 create the danger of inconsistent and/or contradictory judgments arising from 18 the same set of facts. Individualized litigation would also increase the delay 19 and expense to all parties and court system and the issues raised by this action. 20 The damages or other financial detriment suffered by individual Class 21 members may be relatively small compared to the burden and expense that 22 would be entailed by individual litigation of the claims against the Defendant. 23 The injury suffered by each individual member of the proposed class is 24 relatively small in comparison to the burden and expense of individual 25 prosecution of the complex and extensive litigation necessitated by 26 Defendants’ conduct. It would be virtually impossible for members of the 27 proposed Class to individually redress effectively the wrongs to them. Even if 28 the members of the proposed Class could afford such litigation, the court COMPLAINT PAGE 16 OF 21 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 17 of 21 Page ID #:17 1 system could not. Individualized litigation increases the delay and expense to 2 all parties, and to the court system, presented by the complex legal and factual 3 issues of the case. By contrast, the class action device presents far fewer 4 management difficulties, and provides the benefits of single adjudication, 5 economy of scale, and comprehensive supervision by a single court. 6 Therefore, a class action is maintainable pursuant to Fed. R. Civ. P. 23(b)(3). 7 56. Unless the Class is certified, Defendants and their co-conspirators will retain 8 monies received as a result of the Defendants’ conduct alleged herein. Unless 9 a class-wide injunction is issued, Defendants and their co-conspirators will 10 also likely continue to engage in anti-competitive agreements, and members 11 of the Class will continue to suffer injury as a result. 12 57. Further, Defendants have acted or refused to act on grounds that are generally 13 applicable to the class so that declaratory and injunctive relief is appropriate to 14 the Class as a whole, making class certification appropriate pursuant to Fed. 15 R. Civ. P. 23(b)(2). 16 FIRST CAUSE OF ACTION 17 FOR VIOLATIONS OF SECTION 1 OF THE SHERMAN ACT 18 15 U.S.C § 1 19 58. Plaintiff repeats, re-alleges and incorporates by reference the above 20 21 22 allegations as if fully stated herein. 59. Plaintiff brings this cause of action on behalf of himself and on behalf of the putative Class. 23 60. Beginning at a time presently unknown to Plaintiff, and continuing through 24 the present, the exact dates being unknown to Plaintiff, Defendants and their 25 co-conspirators entered into a continuing agreement, combination, or 26 conspiracy in restraint of trade with the purpose, intent, and effect of 27 restraining horizontal competition among the NFL teams and their television 28 partners, and between the teams and the NFL, with the purpose, intent, and COMPLAINT PAGE 17 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 18 of 21 Page ID #:18 1 effect of restraining trade and commerce in the distribution of major league 2 professional football games, in violation of Section 1 of the Sherman Act, 15 3 U.S.C. § 1. 4 61. The contract, combination, or conspiracy has resulted in an agreement, 5 understanding, or concerted action between and among the Defendants and 6 their co-conspirators that the League will be the exclusive provider of live 7 “out-of-market” games distributed through television providers. 8 Defendants and their co-conspirators have agreed that no club or network will 9 offer a competing product, or make their programming available within another team’s exclusive territory. 10 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 The 11 62. The contract, combination, or conspiracy has restrained competition between 12 and among the Defendants in violation of Section 1 of the Sherman Act. It 13 has led to anticompetitive effects in the relevant markets, as alleged above, 14 and caused injury to consumers and competition in those relevant markets 15 and elsewhere. 16 63. The Defendants’ contract, combination, agreement, understanding, or 17 concerted action with their co-conspirators occurred in or affected interstate 18 commerce. 19 understandings, combinations, or agreements by, between, and among the 20 Defendants and other unnamed co-conspirators. These other co-conspirators 21 have either acted willingly or, due to coercion, unwillingly in furtherance of 22 the unlawful restraint of trade alleged herein. The Defendants’ unlawful conduct was through mutual 23 64. Defendants’ anticompetitive conduct has directly and proximately caused 24 antitrust injury, in the form of higher prices and reduced choice, as set forth 25 above. Plaintiff and other consumers will continue to suffer antitrust injury 26 and other damage unless Defendants are enjoined from continuing to engage 27 in the foregoing violations of law. 28 // COMPLAINT PAGE 18 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 19 of 21 Page ID #:19 1 SECOND CAUSE OF ACTION 2 FOR VIOLATIONS OF SECTION 2 OF THE SHERMAN ACT 3 15 U.S.C § 2 4 65. Plaintiff repeats, re-alleges and incorporates by reference the above allegations as if fully stated herein. K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 5 6 66. Defendants and their co-conspirators, by the above-mentioned conduct, 7 possess monopoly power over the market for video presentations of major 8 league football games and have used that power for the purposes of 9 unreasonably excluding and/or limiting competition, in violation of Section 2 10 of the Sherman Act, 15 U.S.C. § 2. These activities have gone beyond those 11 which could be considered as “legitimate business activities,” and are an 12 abuse of market position. 13 67. Through the anti-competitive conduct described herein, Defendants and their 14 co-conspirators have willfully acquired and maintained, and unless restrained 15 by the Court, will continue to willfully maintain, that monopoly power by 16 anti-competitive and unreasonably exclusionary conduct. 17 their co-conspirators have acted with an intent to illegally acquire and 18 maintain that monopoloy power in the relevant product market, and their 19 illegal conduct has enabled them to do so, in violation of Section 2 of the 20 Sherman Act, 15 U.S.C. § 2. Defendants and 21 68. Defendants’ anticompetitive conduct has directly and proximately caused 22 antitrust injury, as set forth above. Plaintiff and other consumers will continue 23 to suffer antitrust injury and other damage unless Defendants are enjoined 24 from continuing to engage in the foregoing violations of law. 25 // 26 // 27 // 28 // COMPLAINT PAGE 19 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 20 of 21 Page ID #:20 PRAYER FOR RELIEF K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 1 2 WHEREFORE, Plaintiff prays that judgment be entered against Defendant, 3 and that Plaintiff and Class members be awarded damages from Defendants as 4 follows: 5 • That this action be certified as a Class Action, Plaintiff be appointed as 6 the representative of the Class, and Plaintiff’s attorneys be appointed 7 Class counsel; 8 • That the contract, combination, or conspiracy, and the acts done in 9 furtherance thereof by Defendants and their co-conspirators as alleged in 10 this Complaint, be adjudged to have been a violation of Section 1 of the 11 Sherman Act, 15 U.S.C. § 1; 12 • That the Defendants’ and their co-conspirators’ actions to illegally 13 acquire and maintain monopoly power in the relevant product market, be 14 adjudged to have been a violation of Section 2 of the Sherman Act, 15 15 U.S.C. § 2; 16 • That judgment be entered for Plaintiff and members of the Class against 17 Defendants for three times the amount of damages sustained by Plaintiff 18 and the members of the Class as allowed by law, together with the costs 19 of this action, including reasonable attorneys’ fees, pursuant to Sections 20 4 and 16 of the Clayton Act, 15 U.S.C. §§ 15 and 26; 21 • That Plaintiff and the Class be awarded pre-judgment and post-judgment 22 interest at the highest legal rate from and after the date of service of this 23 Complaint to the extent provided by law; 24 25 • That Defendants and their co-conspirators be enjoined from further violations of the antitrust laws; 26 • Distribution of any monies recovered on behalf of members of the Class 27 via fluid recovery or cy pres recovery where necessary and as applicable, 28 to prevent Defendants from retaining the benefits of their wrongful COMPLAINT PAGE 20 OF 21 Case 2:15-cv-04606-BRO-JEM Document 1 Filed 06/17/15 Page 21 of 21 Page ID #:21 1 conduct; and 2 • That Plaintiff and members of the Class have such other, further or 3 different relief, as the case may require and the Court may deem just and 4 proper under the circumstances. 5 6 Dated: June 17, 2015 7 Respectfully submitted, KAZEROUNI LAW GROUP, APC 8 9 By: _s/ ABBAS KAZEROUNIAN_______ ABBAS KAZEROUNIAN, ESQ. ATTORNEYS FOR PLAINTIFF 10 K AZ ER OU NI LA W G RO UP , A P C 2 45 F ISC HER A VEN UE , U NIT D 1 C OSTA M ESA , C A 9 262 6 11 12 13 14 TRIAL BY JURY 69. Pursuant to the Seventh Amendment to the Constitution of the United States of America, Plaintiff is entitled to, and demands, a trial by jury. 15 16 Dated: June 17, 2015 Respectfully submitted, 17 KAZEROUNI LAW GROUP, APC 18 19 By: _s/ ABBAS KAZEROUNIAN_______ ABBAS KAZEROUNIAN, ESQ. ATTORNEYS FOR PLAINTIFF 20 21 22 23 24 25 26 27 28 COMPLAINT PAGE 21 OF 21