News

February 2009

Magazine Wholesaler Seeks Injunction Against Magazine Publishers, National Distributors and Other Wholesalers

Marc E. KasowitzDaniel R. BensonHector TorresMaria Gorecki


KBT&F commenced an action on February 9, 2009 on behalf of Source Interlink Distribution, L.L.C. and Source Interlink Companies, Inc., a wholesaler of magazines, against ten magazine publishers, national distributors and wholesalers in the U.S. District Court for the Southern District of New York.  The lawsuit alleges that the defendants devised a collusive anti-competitive scheme to destroy Source’s business and the business of another wholesaler so that defendants, through the two remaining wholesalers, will monopolize the wholesale market.  Source seeks, among other things, a preliminary and permanent injunction against defendants from boycotting the distribution of single-issue magazines to Source, disparaging Source, interfering with Source's business relationships and contractual agreements and stealing Source's employees, trade secrets or intellectual property.  KBT&F partners Marc Kasowitz, Daniel Benson, Hector Torres and Maria Gorecki are leading Source's representation.