Kasowitz Files Antitrust Lawsuit on Behalf of the Hollywood Foreign Press Association Against Jay Penske, Penske Media Corporation, the Golden Globe Foundation, and Gregory Goeckner Relating to Acquisition of the Golden Globe Awards and Monopolization of Hollywood Entertainment Markets

Kasowitz LLP filed a federal lawsuit in the United States District Court for the Central District of California on behalf of the Hollywood Foreign Press Association ("HFPA") against Jay Penske, Penske Media Corporation, the Golden Globe Foundation, and Gregory Goeckner arising out of the defendants' alleged orchestration of a corrupt scheme to fraudulently acquire the Golden Globe Awards, dismantle the 80-year-old organization that created them, and establish monopolistic control over Hollywood trade publications, entertainment awards, and For Your Consideration ("FYC") advertising markets.

As alleged in the complaint, beginning in or around 2021, Penske and billionaire associate Todd Boehly used the major Hollywood trade publications that they control to instigate a boycott of the HFPA with the goal of devaluing the organization and rendering it vulnerable to acquisition.  Boehly then infiltrated the HFPA as interim CEO while simultaneously serving as the buyer seeking to purchase the Golden Globes through his company Eldridge Industries LLC.  Shortly after the deal's signing, Penske emerged and assumed complete control of the Golden Globes. 

As further alleged in the complaint, Penske's acquisition of the Golden Globes is a central component of a broad anticompetitive trust wherein he owns and/or controls at least half a dozen major awards shows (including the Golden Globes, the Billboard Music Awards, the American Music Awards, the Streamy Awards, the Latin American Music Awards, and the Academy of Country Music Awards), almost all of the major Hollywood trade publications that sell the advertising packages for award contestants (including The Hollywood Reporter, Variety, Deadline, Rolling Stone, Billboard, Vibe, and IndieWire), the company that controls the market for predicting winners for those awards shows (Gold Derby Media), the data company that measures statistics for award eligibility (Luminate), and even film and television production companies that compete for those awards (including A24 and Media Rights Capital).  By acquiring the Golden Globes, Penske and Boehly not only solidified a vertical and horizontal monopoly on the awards market, but also effectively positioned themselves to control and exclude members of the domestic and foreign press, and ultimately control the entertainment news disseminated to the general public, while maintaining a monopoly over streams of advertising revenue in that market.  In short, through this alleged anticompetitive trust, Penske-owned trade publications promote Penske-owned contenders for Penske-owned awards predicted by a Penske-owned website. 

Penske has also allegedly used his monopolization to turn the Golden Globes into a pay-to-play racket, requiring expensive FYC advertising purchases from his own trade publications as a prerequisite for awards consideration while excluding HFPA members and chilling competition by retaliating against journalists who dare to speak out against the anticompetitive conduct.

The lawsuit also alleges that defendant Gregory Goeckner—the HFPA's former General Counsel who became CEO of the Golden Globe Foundation, the successor to the HFPA's charitable arm—conspired with Penske and Boehly to fraudulently induce the transfer of approximately $4 million from the HFPA to the Foundation in an effort to starve the HFPA of funds and force the organization to dissolve before the defendants' conduct could be brought to light.

The complaint alleges 20 causes of action including violations of federal and state antitrust laws, unfair trade practices, unfair competition, unjust enrichment, fraud, breach of fiduciary duty, and legal malpractice.  The HFPA seeks damages exceeding $150 million, treble damages, rescission of allegedly unlawful agreements, injunctive relief prohibiting the defendants from continuing their anticompetitive practices, and disgorgement of ill-gotten gains.

The Kasowitz team representing the HFPA includes partners Daniel A. Saunders and Robert W. Bosslet and associates Dwayne A. Amos and Kristine B. Abrenica.