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Viacom Liable for Federal Racketeering Charges

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A federal jury has awarded about $14 million to three small billboard companies that claim Viacom Outdoor cheated them out of premium billboard sites, the Associated Press reports (via The Miami Herald). Viacom and its CEO Wally Kelly and SVP Harold Gustin have been found liable for federal racketeering violations.

Kansas City-based Craig Outdoor Advertising Inc. and Midwest Outdoor Media LLC, as well as Patriot Outdoors LLC of Connecticut, claimed that, historically, railroads have leased their right of way to billboard companies on a first-come, first-served basis. In 2000, Viacom Inc. bought Outdoor Systems Inc. and Transportation Displays Inc., which were serving as agents for the railroads to review billboard company applications.

The plaintiffs charged that Viacom Outdoor used its position with the railroads to encourage small billboard companies to investigate and develop potential sites but would cherry-pick the best for itself.

Related topics: Feature, Outdoor...   

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