Standard General Files New Complaint in Conspiracy Suit against FCC, Dish, Byron Allen

Standard General and its founder Soohyung Kim filed an amended complaint Friday in an April lawsuit that accuses FCC Chairwoman Jessica Rosenworcel, Allen Media CEO Byron Allen, Dish CEO Charlie Ergen and others of conspiring to block Standard’s $8.6 billion attempted purchase of Tegna last year (see 2306010077). The amended complaint is largely similar to one filed in April (see 2404250059) but includes an additional count, which argues that the FCC violated the Communications Act when it considered Allen as an alternative buyer to Standard. “The possibility of an alternative buyer for TEGNA -- Mr. Allen -- infected the agency’s entire treatment of Standard General’s license-transfer application,” the amended complaint said. Considering an alternative buyer constitutes “an extreme agency error” that should be subject to judicial review, and the court should enjoin the FCC from doing so for Standard’s future transactions, the complaint said. “Mr. Kim has had to alter Standard General’s immediate broadcast strategy” to avoid deals that fall under FCC review to prevent future discrimination against Standard, the complaint said. “Without declaratory or injunctive relief, he cannot pursue larger deals that he would otherwise be pursuing and that require the FCC’s pre-approval.” The amended complaint also calls out the timing of meetings and phone calls Media Bureau Chief Holly Saurer and Rosenworcel had with Ergen and I Street Advocates attorney David Goodfriend, who has represented Dish, Allen and unions that opposed Standard/Tegna. “Mr. Ergen and Chairwoman Rosenworcel had a scheduled breakfast to occur within a week of the shot clock starting, Mr. Goodfriend and Ms. Saurer had a scheduled meeting the same day the objectors first filed, and Mr. Allen called Mr. Kim the day after the FCC ordered Standard General to produce highly sensitive documents,” the complaint said. The defendants “expressly or tacitly entered into an agreement to work with each other and with Chairwoman Rosenworcel and Ms. Saurer to thwart the Standard General-TEGNA deal,” the amended complaint said. The FCC, Dish, Allen and the unions have until Sept. 9 to respond, according to the court’s orders. Dish, Allen Media, the FCC and Goodfriend didn’t comment.