NY judge sides with publishers, tosses lawsuit brought by former Tenn. magazine distributor

NY judge tosses Tenn. company’s magazine lawsuit

NEW YORK — A judge in New York has tossed out an antitrust lawsuit brought against publishers by one of the country’s one-time largest wholesale magazine distributors.

Federal Judge Paul Crotty in Manhattan says Anderson News LLC caused its own downfall by demanding publishers pay a 7-cent surcharge on each magazine distributed after February 2009. He rejected claims publishers conspired to drive the Knoxville, Tenn., company out of business.

Anderson suspended operations after February 2009, laid off thousands of employees and sold its assets at fire sale prices. The company had operated since 1917 and had served 30,000 retail customers in 37 states.

Anderson lawyer Marc Kasowitz says he believes the ruling will be overturned on appeal because of “substantial errors as a matter of fact and as a matter of law.”