NewCardDude
06-22-2004, 03:34 AM
By Joyzelle Davis
Bloomberg News
Douglas County - EchoStar Communications Corp. is running "false and misleading" advertisements that say Pegasus Communications Corp. customers may lose satellite TV signals when Pegasus' contract with DirecTV Group Inc. ends, a suit says.
DirecTV, the biggest U.S. satellite-television provider, and the National Rural Telecommunications Cooperative earlier this month ended Pegasus' exclusive contract to resell service to 8.4 million U.S. households in 41 states. The move, effective Aug. 31, prompted Pegasus' satellite-TV unit to file for bankruptcy.
DirecTV said it wants to take back rights to market its service in Pegasus' territories because it has been losing customers there to EchoStar. The suit filed by El Segundo, Calif.-based DirecTV seeks a court order to block EchoStar's "misleading" advertising campaign and to force EchoStar to issue written statements that there will be no service disruption.
"EchoStar's false and misleading advertisements have caused, or are likely to cause, actual confusion and have misled and deceived customers," according to the suit filed Friday in U.S. District Court in Los Angeles.
EchoStar believes its advertising is "factually accurate," the Douglas County-based company said in an e-mailed statement. "It informs Pegasus customers of the risk that they may lose service and the great alternative available to them by switching to Dish Network."
Separately, a federal bankruptcy judge in Maine denied Pegasus' request for a temporary restraining order against DirecTV to prevent DirecTV from marketing its service to consumers in areas served by Pegasus.
Bala Cynwyd, Pa.-based Pegasus said it provided DirecTV service to 1.16 million people at the end of last year, 12 percent fewer than a year earlier.
Bloomberg News
Douglas County - EchoStar Communications Corp. is running "false and misleading" advertisements that say Pegasus Communications Corp. customers may lose satellite TV signals when Pegasus' contract with DirecTV Group Inc. ends, a suit says.
DirecTV, the biggest U.S. satellite-television provider, and the National Rural Telecommunications Cooperative earlier this month ended Pegasus' exclusive contract to resell service to 8.4 million U.S. households in 41 states. The move, effective Aug. 31, prompted Pegasus' satellite-TV unit to file for bankruptcy.
DirecTV said it wants to take back rights to market its service in Pegasus' territories because it has been losing customers there to EchoStar. The suit filed by El Segundo, Calif.-based DirecTV seeks a court order to block EchoStar's "misleading" advertising campaign and to force EchoStar to issue written statements that there will be no service disruption.
"EchoStar's false and misleading advertisements have caused, or are likely to cause, actual confusion and have misled and deceived customers," according to the suit filed Friday in U.S. District Court in Los Angeles.
EchoStar believes its advertising is "factually accurate," the Douglas County-based company said in an e-mailed statement. "It informs Pegasus customers of the risk that they may lose service and the great alternative available to them by switching to Dish Network."
Separately, a federal bankruptcy judge in Maine denied Pegasus' request for a temporary restraining order against DirecTV to prevent DirecTV from marketing its service to consumers in areas served by Pegasus.
Bala Cynwyd, Pa.-based Pegasus said it provided DirecTV service to 1.16 million people at the end of last year, 12 percent fewer than a year earlier.