UNIMAG Sues Murdoch, Levy; Ohio Attorney General Investigating UNIMAG's Demise

Circulation Management, June, 2000

In early May, the principals of United Magazine Company, or UNIMAG, which was the fifth-largest wholesaler before it shut down last September, filed suit against Murdoch Magazines Distribution, Inc. (now TV Guide Distribution, Inc.) and Chicago-based wholesaler Chas. Levy Circulating Co.

Among other allegations, the suit charges that Murdoch engaged in price discrimination and "predatory" pricing practices that favored Levy and resulted in the demise of Dublin, Ohio-based UNIMAG, breached a long-standing territorial agreement with UNIMAG, and misappropriated a proprietary UNIMAG software system. The suit, filed in the U.S. District Court for the Southern District of New York, names Barbara Levy Kipper, CEO and controlling shareholder in CLC Management, as a co-defendent. TVGI and Levy are not commenting on the suit while it is under litigation.

In addition, the Ohio state attorney general's office has confirmed that it is investigating the circumstances of UNIMAG's demise. A spokesperson for the office declined further comment.

Levy's negotiations to buy UNIMAG were broken off last June. After UNIMAG went under, Levy, Anderson News, The News Group and some secondary wholesalers competed for UNIMAG's business, which included chains in the Midwest and some in the Northeast and Southeast.