Valassis shares climb after $500M antitrust suit settlement with News Corp. division

Valassis shares jump after News Corp. settlement

SEATTLE — Shares of Valassis Communications Inc. skyrocketed Monday after the direct mail provider said rival News America Marketing would pay it $500 million to settle antitrust charges.

The deal, which also includes a 10-year shared mail distribution agreement, settles lawsuits Valassis filed in several states against News America Marketing, a subsidiary of News Corp.

News America had appealed one ruling in Michigan circuit court that awarded Valassis $300 million in damages. That case was set to go to trial in federal court Tuesday.

Valassis claimed News America was threatening customers with price hikes for not offering exclusivity in marketing deals. News America countered that Valassis tried to force higher marketing rates by publicly announcing price changes.

Shares of Valassis increased $3.38, or 16.2 percent, to $24.31 in afternoon trading. They earlier traded as high as $25.11, eclipsing a 52-week high of $21.75 set on Friday.

News Corp.’s stock slipped 4 cents to $14.64.