Upload
keaton-fox
View
297
Download
0
Embed Size (px)
DESCRIPTION
Cox Response (Uhl vs. Cox)
Citation preview
IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA
In re MDL 2048 COX ENTERPRISES, INC. SET-TOP CABLE TELEVISION BOX ANTITRUST LITIGATION
) ) )
Case No. ML-12-2048-C
ANSWER
Defendant Cox Communications, Inc. (Cox), by and through undersigned
counsel, hereby answers Plaintiffs Class Action Complaint (Complaint) and states as
follows. Any allegation not expressly admitted by Cox in this Answer is hereby denied.
INTRODUCTION
1. Cox denies that this case is appropriate for adjudication on a class-wide
basis. Cox states that Paragraph 1 contains legal conclusions as to substantial
economic power which do not require a response. Notwithstanding, Cox denies each
and every allegation in Paragraph 1, including Plaintiffs characterization of Premium
Cable and Premium Cable subscribers.
2. Cox states that Paragraph 2 states legal conclusions to which no response is
required. Notwithstanding, Cox denies each and every allegation in Paragraph 2.
3. Cox states that Paragraph 3 states a legal conclusion that Cox has tied the
distribution of set-top boxes to the provision of Premium Cable to which no response is
required. Paragraph 3 also states a legal conclusion that Cox has unreasonably restrained
trade in violation of Section 1 of the Sherman Act, 15 U.S.C. 1, to which no response is
required. Notwithstanding, Cox denies each and every allegation in Paragraph 3,
including Plaintiffs' characterization of the term Premium Cable.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 1 of 25
2
THE PARTIES
4. Cox denies that at all material times Richard Healy subscribed to Premium
Cable provided by Cox.
5. Cox admits that Cox Communications, Inc. is a Delaware corporation with
its principal place of business in Atlanta, Georgia.
6. Cox admits that it provides multi-channel video programming distribution
through a cable network and leases set-top boxes.
JURISDICTION AND VENUE
7. Cox states that Paragraph 7 states legal conclusions to which no response is
required. Notwithstanding, Cox denies that Plaintiffs' claims properly arise under an act
of Congress sufficient to confer jurisdiction under 28 U.S.C. 1331 or 1337.
8. Cox admits that it engages in business in Oklahoma through its subsidiary
CoxCom Inc. d/b/a Cox Communications Oklahoma. The remainder of Paragraph 8
states legal conclusions to which no response is required.
FACTUAL ALLEGATIONS
9. Cox admits that it provides cable multi-channel video programming
distribution ("MVPD") in the United States. Cox is without sufficient information to
admit or deny the truth of the remaining allegations in Paragraph 9.
10. Cox denies that MVPD providers do not compete with one another or face
competition from MVPD providers who use other formats than cable. The remainder of
Paragraph 10 states legal conclusions regarding "economic power" and tying violations
to which no response is required. Notwithstanding, Cox denies each and every
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 2 of 25
3
remaining allegation in Paragraph 10, including Plaintiffs' characterization of the term
"economic power."
11. Cox denies that it compels consumers to rent or pay for set-top boxes.
Cox denies that a set-top box is a "separate product that it distributes." Cox denies that
a set-top box is essentially an extension of a television set, which consumers must use
to access the full range of "Premium Cable" services that they have purchased. Cox
admits that it, in some instances, charges a monthly rental fee for set-top boxes when
consumers choose to rent them. Cox admits that it purchases set-top boxes from
manufacturers. Cox denies that it forces consumers to pay a monthly rental fee for set-
top boxes, or that the fee it charges for set-top boxes "quickly adds up" to more than
the cost Cox pays to purchase the set-top-boxes from manufacturers. The remainder of
Paragraph 11 states legal conclusions regarding what constitutes a "separate product" to
which no response is required. Notwithstanding, Cox denies each and every remaining
allegation in Paragraph 11, including Plaintiffs' characterization of the terms "classic
tying violation," "separate product," and "Premium Cable services."
The Tying Product: Premium Cable
12. Cox denies that it offers two cable products, "Basic Cable" and
"Premium Cable." Cox is without sufficient information to admit or deny the truth of
the allegations in Paragraph 12 that pertain to third parties. Cox denies each and every
remaining allegation in Paragraph 12, including Plaintiffs' characterization of "Basic
Cable" and "Premium Cable."
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 3 of 25
4
13. Cox denies each and every allegation in Paragraph 13, including Plaintiffs'
characterization of "Basic Cable."
14. Cox denies each and every allegation in Paragraph 14, including Plaintiffs'
characterization of "Premium Cable."
15. Cox denies that approximately two-thirds of Cox's Oklahoma City video
customers subscribe to "Premium Cable." Cox denies each and every remaining
allegation in Paragraph 15, including Plaintiffs' characterization of "Premium Cable."
16. Cox admits that subscribers may in some (but not all) circumstances be
charged a fee for utilizing a pay-per-view service. Cox denies each and every remaining
allegation in Paragraph 16, including Plaintiffs' characterization of "Premium Cable" and
"Basic Cable."
17. Cox states that Paragraph 17 refers to a publicly available government
document and respectfully directs the Court to the full report for the complete and
accurate statistics, language, and context. Cox denies each and every remaining allegation
in Paragraph 17, including Plaintiffs' characterization of "Premium Cable" and any
suggestion that the FCC has recognized or adopted Plaintiffs' definition of "Premium
Cable."
18. Cox states that Paragraph 18 refers to a publicly available government
document and respectfully directs the Court to the full report for the complete and
accurate statistics, language, and context. Cox denies each and every remaining allegation
in Paragraph 18, including Plaintiffs' characterization of "Premium Cable" and any
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 4 of 25
5
suggestion that the FCC has recognized or adopted Plaintiffs' definition of "Premium
Cable."
19. Cox denies each and every allegation in Paragraph 19, including Plaintiffs'
characterization of "Premium Cable," "Premium Cable subscribers," "Basic Cable,"
"Basic Cable subscribers," and "cable-ready."
20. Cox denies each and every allegation in Paragraph 20, including Plaintiffs'
characterization of "Premium Cable services."
21. Cox denies each and every allegation in Paragraph 21, including Plaintiffs'
characterization of "Premium Cable."
22. Cox states that Paragraph 22 states a legal conclusion that "Premium Cable"
is the tying product, to which no response is required. Notwithstanding, Cox denies each
and every allegation made in Paragraph 22, including Plaintiffs' characterization of
"Premium Cable" as a tying product.
The Tied Product: Set-Top Boxes
23. Cox denies each and every allegation in Paragraph 23, including Plaintiffs'
characterization of "Premium Cable."
24. Cox denies Plaintiffs' characterization of the terms "cable-ready,"
"premium channels," and "Premium Cable." Cox is without sufficient information to
admit or deny the truth of the remaining allegations in Paragraph 24.
25. Cox denies each and every allegation in Paragraph 25, including Plaintiffs'
characterization of "Cable-ready" and "Premium Cable."
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 5 of 25
6
26. Cox denies each and every allegation in Paragraph 26, including Plaintiffs'
characterization of the terms "Premium Cable services" and "Premium Cable
subscribers."
27. Cox is without sufficient information to admit or deny the truth of the
allegations in Paragraph 27 that pertain to third parties. Notwithstanding, Cox admits that
Motorola and Scientific Atlantic manufacture set-top boxes.
28. Cox denies that consumers have demonstrated a demand for acquiring set-
top boxes apart from Premium Cable, including Plaintiffs characterization of the term
Premium Cable. Cox is without sufficient information to admit or deny the truth of the
allegations in Paragraph 28 that pertain to third parties.
29. Cox denies each and every allegation in Paragraph 29, including Plaintiffs'
characterization of "Premium Cable" and "Premium Cable services."
30. Cox denies that it has engaged in a practice that forecloses competition. Cox
states that the remainder of Paragraph 30 states legal conclusions as to "tying,"
foreclosure of competition, and "the market for set-top boxes," to which no response is
required. Notwithstanding, Cox denies each and every remaining allegation in Paragraph
30, including Plaintiffs' characterization of "Premium Cable" and "the market for set-top
boxes."
31. Cox states that Paragraph 31 states a legal conclusion that set-top boxes are
the tied product, to which no response is required. Notwithstanding, Cox denies each and
every allegation in Paragraph 31.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 6 of 25
7
Consumers Who Purchase Premium Cable From Cox Are Also Forced to Rent Set-Top Boxes from Cox
32. Cox denies each and every allegation made in Paragraph 32, including
Plaintiffs' characterization of "Premium Cable service."
33. Cox states that Paragraph 33 states a legal conclusion regarding "the tying
requirement," to which no response is required. Notwithstanding, Cox denies that it has
posted a "tying" requirement on its website. Cox denies that the Plaintiffs have accurately
and completely quoted from "its website." Cox states that Paragraph 33 refers to a
publicly available website, and respectfully directs the Court to the website for the
complete and accurate language and context. Cox denies each and every remaining
allegation in Paragraph 33.
34. Cox denies each and every allegation in Paragraph 34, including Plaintiffs'
characterization of "Premium Cable subscribers."
35. Cox states that Paragraph 35 states a legal conclusion "[t]hat set-top boxes
obtained from a source other than Cox will not function on Cox's cable MVPD system
is another means of requiring consumers to submit to its illegal tie," to which no
response is required. Notwithstanding, Cox denies that it has engaged in an illegal tie.
Cox denies each and every remaining allegation in Paragraph 35.
36. Cox denies that any fee it may charge for set-top-boxes "quickly adds up"
to more than the cost Cox pays to purchase the set-top-boxes. Cox denies each and every
remaining allegation in Paragraph 36.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 7 of 25
8
37. Cox states that Paragraph 37 refers to a Federal statute and respectfully
directs the Court to the full text of the statute for the complete and accurate language and
context. Cox denies Plaintiffs' characterizations of the expectations, indications, or
interpretations of Congress and the FCC.
38. Cox admits that, in some circumstances, it encrypts or scrambles some
data as a security measure to prevent signal theft. Cox denies each and every remaining
allegation as they pertain to Cox, including Plaintiffs' characterization of "cable-ready,"
"Premium Cable services," and "Basic Cable." Cox is without sufficient information to
admit or deny the truth of those allegations in Paragraph 38 that pertain to the actions of
third parties.
39. Cox denies that there is a product called "Premium Cable" the descrambling
or un-encrypting of which requires a device.
40. Cox denies each and every allegation as they pertain to Cox. Cox is without
sufficient information to admit or deny the truth of those allegations in Paragraph 40 that
pertain to the actions of third parties.
41. Cox states that the FCC's rules and its actions in its publicly reported
decisions speak for themselves. Cox otherwise denies each and every allegation in
Paragraph 41 in its entirety.
42. Cox admits that it offers consumers a CableCARD. Cox denies each and
every remaining allegation in Paragraph 42, including Plaintiffs' characterization of the
terms "integration ban," "cable-ready," and "non-integrated set-top boxes."
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 8 of 25
9
43. Cox states that Paragraph 43 refers to and purports to quote a publicly
available website, and respectfully directs the Court to the full quoted website for the
complete and accurate language and context. Cox denies each and every remaining
allegation in Paragraph 43, including Plaintiffs' characterization of the terms "Premium
Cable subscribers" and "Premium cable services."
44. Cox denies that it has taken measures to limit the availability and
"attractiveness" of CableCARDS. Cox states that the FCC's rules and its actions in its
publicly reported decisions speak for themselves. Cox denies each and every remaining
allegation in Paragraph 44.
45. Cox denies that it requires "Premium Cable subscribers" to rent the
Cab1eCARDS that it distributes and charges them an installation fee. Cox denies that it
charges any "particularly egregious" fee. Cox denies each and every remaining allegation
in Paragraph 45, including Plaintiffs' characterization of the term "Premium Cable
subscribers" and "cable-ready."
46. Cox denies that it has distributed a "strikingly small" number of
CableCARDS. Cox states that Paragraph 46 purports to refer to a document filed in a
Federal agency proceeding, and respectfully directs the Court to the full referenced filing
for the complete and accurate statistics, language, and context.
47. Cox denies each and every allegation to the extent they pertain to Cox. Cox
is without sufficient information to admit or deny the truth of the remaining allegations in
Paragraph 47 that pertain to the actions and motivations of third parties.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 9 of 25
10
48. Cox states that Paragraph 48 states legal conclusions that Cox has engaged
in an illegal tie of "Premium Cable" to set-top boxes, to which no response is required.
Notwithstanding, Cox denies each and every allegation in Paragraph 48, including the
allegation that it has "done everything in its power" to "protect" an illegal tie, and
Plaintiffs' characterization of "Premium Cable."
Cox Possesses Economic Power in The Tying Market
49. Cox states that Paragraph 49 contains legal conclusions regarding "requisite
economic power" and "illegal tying practice" which do not require a response.
Notwithstanding, Cox denies each and every allegation in Paragraph 49, including that it
has economic power or that it has forced consumers to submit to an illegal tying practice.
50. Cox denies that it has consistently raised prices for "Premium Cable." Cox
states that Paragraph 50 contains legal conclusions regarding "substantial market share"
which do not require a response. Notwithstanding, Cox denies each and every
remaining allegation in Paragraph 50, including that it has a substantial market share or
has forced consumers to submit to an illegal tying practice.
Cox Regularly Increases The Price of Premium Cable Without Losing Customers
51. Cox denies that it has repeatedly raised the price of "Premium Cable" over
the last ten years. Cox denies each and every remaining allegation in Paragraph 51.
52. Cox denies each and every allegation in Paragraph 52, including Plaintiffs'
characterization of the term "Premium Cable subscribers."
53. Cox states that Paragraph 53 states legal conclusions regarding "sufficient
economic power to unlawfully tie set-top boxes to Premium Cable," which do not
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 10 of 25
11
require a response. Cox denies each and every remaining allegation in Paragraph 53,
including Plaintiffs' characterization of the term "Premium Cable."
Cox Has A Substantial Share of the Relevant Market
54. Cox states that Paragraph 54 states a legal conclusion that the relevant
product is the provision of "Premium Cable MVPD," to which no response is required.
Notwithstanding, Cox denies that the relevant product is the provision of Premium Cable
MVPD.
55. Cox states that Paragraph 55 purports to refer to a publicly available
government document and respectfully directs the Court to the full report for the
complete and accurate language and context. Cox denies the Plaintiffs' characterization of
"Premium Cable" in the context of the government document referred to in Paragraph 55.
56. Cox denies each and every remaining allegation in Paragraph 56, including
Plaintiffs' characterization of the term "Premium Cable subscribers".
57. Cox denies each and every allegation in Paragraph 57, including Plaintiffs'
characterization of the term "Premium Cable".
58. Cox denies that "cable MVPD" consists of "Premium Cable" and "Basic
Cable." Cox is without sufficient information to admit or deny the truth of the allegations
of Paragraph 58, which Plaintiffs base on an unidentified "2007 Congressional research
report." Cox denies each and every remaining allegation in Paragraph 58, including
Plaintiffs' characterization of "Premium Cable" and "Basic Cable."
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 11 of 25
12
59. Cox is without sufficient information to admit or deny the truth of the
allegations of Paragraph 59, which are based on an unidentified "studies." Cox denies
each and every remaining allegation in Paragraph 59.
60. Denied.
61. Denied.
62. Cox states that Paragraph 62 states legal conclusions regarding "switching
costs," which do not require a response. Cox denies each and every remaining allegation
in Paragraph 62.
63. Cox states that Paragraph 63 states legal conclusions regarding reasonable
interchangeability which do not require a response. Cox states that Paragraph 63 refers to
a publicly available website and respectfully directs the Court to the cited website for the
complete and accurate language and context. Cox denies each and every remaining
allegation in Paragraph 63.
64. Cox states that Paragraph 64 purports to refer to a publicly available
government document and respectfully directs the Court to the full report for the
complete and accurate language and context. Cox is without sufficient information to
admit or deny the truth of the remaining allegations in Paragraph 64 that pertain to third
parties. Cox denies each and every remaining allegation in Paragraph 64.
65. Cox states that Paragraph 65 refers to a publicly available government
document and respectfully directs the Court to the full report for the complete and
accurate language and context. Cox denies each and every remaining allegation in
Paragraph 65.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 12 of 25
13
66. Cox states that Paragraph 66 refers to a publicly available government
document and respectfully directs the Court to the full report for the complete and
accurate language and context. Cox denies each and every remaining allegation in
Paragraph 66.
67. Cox is without sufficient information to admit or deny the truth of the
allegations in Paragraph 67 that pertain to third parties.
68. Cox states the Paragraph 68 states legal conclusions regarding alleged
barriers to entry which do not require a response. Notwithstanding, Cox denies that cable
MVPDs or other MVPDs face "significant barriers to entry." Cox states that Paragraph 68
purports to refer to a publicly available government document and respectfully directs the
Court to the full report for the complete and accurate language and context. Cox denies
each and every remaining allegation in Paragraph 68.
69. Cox states the Paragraph 69 states legal conclusions regarding alleged
barriers to entry which do not require a response. Cox states that Paragraph 69 purports to
refer to a publicly available government document and respectfully directs the Court to
the full report for the complete and accurate language and context. Cox denies each and
every remaining allegation in Paragraph 69, including Plaintiffs' characterization of
"Premium Cable."
70. Denied.
71. Denied.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 13 of 25
14
72. Cox denies the allegations in Paragraph 72 to the extent they pertain to
Cox. Cox is without sufficient information to admit or deny the truth of the remaining
allegations in Paragraph 72 that pertain to third parties.
73. Cox denies that the franchising process is a barrier to entry. Cox is without
sufficient information to admit or deny the truth of the allegations of Paragraph 73 that
are based on unspecified FCC findings.
74. Cox states that Paragraph 74 states legal conclusions regarding alleged
"entry barriers" that do not require a response. Cox denies each and every allegation in
Paragraph 74 to the extent they pertain to Cox. Cox is without sufficient information to
admit or deny the truth of the allegations in Paragraph 74 that pertain to third parties.
75. Cox states that Paragraph 75 states legal conclusions regarding alleged
"entry barriers" that do not require a response. Cox denies each and every allegation in
Paragraph 75 to the extent they pertain to Cox. Cox is without sufficient information to
admit or deny the truth of the remaining allegations in Paragraph 75 that pertain to third
parties.
76. Cox states that Paragraph 76 states legal conclusions, including conclusions
regarding "substantial entry barriers," "substitutes," and "market shares" that do not
require a response. Cox denies each and every allegation in Paragraph 76 to the extent
they pertain to Cox. Cox is without sufficient information to admit or deny the truth of
the remaining allegations in Paragraph 76 that pertain to third parties.
77. Cox states that Paragraph 77 purports to refer to a publicly available
government document and respectfully directs the Court to the full report for the
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 14 of 25
15
complete and accurate language and context. Cox denies each and every remaining
allegation in Paragraph 77.
78. Cox states that Paragraph 78 purports to refer to a publicly available
government document and respectfully directs the Court to the full report for the
complete and accurate language and context. Cox denies each and every remaining
allegation in Paragraph 78.
79. Cox states that Paragraph 79 purports to refer to a publicly available public
filing and respectfully directs the Court to the full cited filing for the complete and
accurate language and context. Cox denies each and every remaining allegation in
Paragraph 79.
80. Cox states that Paragraph 80 purports to refer to a publicly available public
filing and respectfully directs the Court to the full cited filing for the complete and
accurate language and context. Cox denies each and every remaining allegation in
Paragraph 80.
81. Cox states that Paragraph 81 states legal conclusions regarding reasonable
interchangeability, market share, and economic power that do not require a response.
Notwithstanding, Cox denies each and every allegation in Paragraph 81.
82. Cox states that the allegations in Paragraph 82 purport to rely on publicly
available filings, and respectfully directs the Court to the cited filings for the complete
and accurate facts, language, and context. Cox denies each and every remaining
allegation in Paragraph 82.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 15 of 25
16
83. Cox states that Paragraph 83 states legal conclusions regarding "sufficient
economic power" and "illegal" tying which do not require a response. Notwithstanding,
Cox denies that it has "sufficient economic power" in all of the areas in which it
operates. Cox denies that it has engaged in actions that constitutes an "illegal tie." Cox
denies each and every remaining allegation in Paragraph 83.
84. Cox states that Paragraph 84 states legal conclusions regarding relevant
markets, "sufficient economic power," and "illegal" tying which do not require a
response. Notwithstanding, Cox denies that it has a "staggering share" of the potential
subscribers in the areas in which it operates even if satellite MVPD was considered part
of the "relevant market." Cox denies that it has engaged in activity that constitutes an
illegal tie. Cox denies each and every remaining allegation in Paragraph 84.
85. Cox states that Paragraph 85 states legal conclusions regarding "economic
power" which do not require a response. Notwithstanding, Cox denies that it has
"economic power" over the provision of "cable MVPD." Cox denies that it has power
over both "Basic Cable" and "Premium Cable." Cox denies each and every remaining
allegation in Paragraph 85, including Plaintiffs' characterization of "Basic Cable" and
"Premium Cable."
86. Cox states that Paragraph 86 states a legal conclusion that the relevant
geographic market is the areas in which Cox provides "Premium Cable" in its Oklahoma
City Market which does not require a response. Notwithstanding, Cox denies each and
every allegation in Paragraph 86, including Plaintiffs' characterization of "Premium
Cable."
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 16 of 25
17
87. Cox states that Paragraph 87 states a legal conclusion regarding sufficient
market power to impose an unlawful tie that does not require a response.
Notwithstanding, Cox denies each and every allegation in Paragraph 87.
88. Cox states that Paragraph 88 purports to refer to a publicly available public
filing and respectfully directs the Court to the full cited filing for the complete and
accurate language and context. Cox denies each and every remaining allegation in
Paragraph 88.
89. Cox states that Paragraph 89 states legal conclusions regarding "economic
power to impose a tie" and geographic market that do not require a response.
Notwithstanding, Cox denies that it has economic power. Cox denies that it has engaged
in activity that constitutes a tie. Cox denies that "all of the areas in which it operates" is a
relevant geographic market. Cox denies each and every remaining allegation in Paragraph
89.
Coxs Illegal Tie Affects a Not Insubstantial Amount of Commerce In The Market For Set-Top Boxes
90. Cox denies each and every allegation in Paragraph 90, including Plaintiffs'
characterization of "Premium Cable subscribers."
91. Denied.
92. Cox states that Paragraph 92 states a legal conclusion that Cox has
engaged in an illegal tie that does not require a response. Notwithstanding, Cox denies
that it has engaged in activity that constitutes an illegal tie, including taking efforts to
control the provision of set-top boxes. Cox denies each and every remaining allegation
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 17 of 25
18
in Paragraph 92 to the extent that they pertain to Cox. Cox is without sufficient
information to admit or deny the truth of the remaining allegations in Paragraph 92 that
pertain to the actions and motivations of third parties.
93. Denied.
94. Denied.
95. Cox states that Paragraph 95 states legal conclusions regarding "illegal
tying practices" that do not require a response. Notwithstanding, Cox denies that it has
engaged in activity that constitutes illegal tying. Cox denies each and every remaining
allegation to the extent they pertain to Cox. Cox is without sufficient information to
admit or deny the truth of the remaining allegations in Paragraph 95 that pertain to the
actions of third parties.
Coxs Illegal Tie Affects A Not Insubstantial Amount of Interstate Commerce
96. Cox admits that it provides cable service to customers in the United States.
Cox denies each and every remaining allegation in Paragraph 96.
97. Cox denies that customers subscribe to "Cox's Premium Cable services."
Cox denies each and every remaining allegation in Paragraph 97, including Plaintiffs'
characterization of "Premium Cable services."
98. Denied.
CLASS ACTION ALLEGATIONS
99. Denied.
100. Cox denies the existence of a class or the appropriateness of certification of
a class.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 18 of 25
19
101. Cox states that Paragraph 101 states a legal conclusion regarding
numerosity which does not require a response. Notwithstanding, Cox denies each and
every allegation in Paragraph 101.
102. Cox states that Paragraph 102 states legal conclusions regarding
commonality and predominance that do not require a response. Notwithstanding, Cox
denies each and every allegation in Paragraph 102.
103. Cox states that Paragraph 103 states legal conclusions regarding typicality
that do not require a response. Notwithstanding, Cox denies each and every allegation in
Paragraph 103.
104. Cox states that Paragraph 104 states legal conclusions regarding adequacy
that do not require a response. Notwithstanding, Cox denies each and every allegation in
Paragraph 104.
105. Cox states that Paragraph 105 states legal conclusions regarding superiority
that do not require a response. Notwithstanding, Cox denies each and every allegation in
Paragraph 105.
106. Cox admits that the Federal Courts have experience with class actions. Cox
denies each and every remaining allegation in Paragraph 106.
COUNT I
(Violation of Section 1 of the Sherman Act for Unlawful Tying)
107. Cox repeats and incorporates by reference its responses to Paragraphs 1
through 106.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 19 of 25
20
108. Cox states that Paragraph 108 purports to refer to Federal statutes and
respectfully directs the Court to the full text of the cited statutes for the complete and
accurate language and context.
109. Cox states that the Plaintiffs' claims speak for themselves, but denies that
there is any basis for relief or that there is a class. Cox denies that it engaged in any
actions that violated the Sherman Act.
110. Denied.
111. Denied.
112. Denied.
113. Denied.
114. Denied.
115. Denied.
116. Denied.
117. Denied.
118. Denied.
COUNT II (Violation of Oklahoma Antitrust Reform Act)
119. Cox repeats and incorporates by reference its responses to Paragraphs 1
through 118.
120. Denied.
121. Denied.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 20 of 25
21
COUNT III (Unjust Enrichment)
122. Cox repeats and incorporates by reference its responses to Paragraphs 1
through 121.
123. Denied.
124. Denied.
125. Denied. Affirmative Defenses
By asserting the defenses set forth below, Cox does not allege or admit that it has
the burden of proof and/or the burden of persuasion with respect to any of these matters
or that Plaintiffs are relieved of their burden to prove each and every element of its
claims and damages, if any, to which it is entitled. As and for its affirmative defenses,
Cox states as follows:
First Affirmative Defense
The Complaint fails to state a claim upon which relief may be granted.
Second Affirmative Defense
Plaintiffs lack standing to bring claims for antitrust violations because, among
other reasons, they have failed to plead facts showing a direct causal connection between
the challenged conduct and their alleged injury, and because Plaintiffs have not suffered
antitrust injury.
Third Affirmative Defense
Plaintiffs lack standing to bring this case on behalf of persons other than
themselves.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 21 of 25
22
Fourth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because such claims are not
cognizable under the Sherman Act, Federal law, or the law of any state.
Fifth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because the complained-of
conduct is required by, regulated by, or approved by Federal Law and/or the rules and
policies of the Federal Communications Commission and state cable franchising
authorities.
Sixth Affirmative Defense
Plaintiffs claims are barred by the filed rate doctrine.
Seventh Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because Plaintiffs have suffered
no injury to a legally protected or cognizable interest and no damages as a result of the
matters alleged in the Complaint.
Eighth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because the conduct complained
of was lawful, justified, constitutes bona fide business competition, is pro-competitive,
and was carried out in furtherance of legitimate business interests.
Ninth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because there has been no injury
to competition either in fact or as alleged in the Complaint.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 22 of 25
23
Tenth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because Plaintiffs have failed to
define a proper geographic and/or product market for their claims.
Eleventh Affirmative Defense
Plaintiffs fail to allege facts sufficient to support certification of a Class under
Fed. R. Civ. P. 23.
Twelfth Affirmative Defense
Any damages recovered by Plaintiffs from Cox must be limited by the applicable
statutory ceilings on recoverable damages.
Thirteenth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, by the relevant statutes of
limitations, statutes of repose, and/or laches.
Fourteenth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, by waiver or estoppel.
Fifteenth Affirmative Defense
Any damages suffered by Plaintiffs as alleged in the Complaint are solely and
proximately caused by the operation of external economic factors and/or forces in the
marketplace over which Cox had no control, and not by any act or omission attributable
to Cox.
Sixteenth Affirmative Defense
Plaintiffs' claims are barred, in whole or in part, because Plaintiffs failed to take
appropriate and necessary steps to mitigate damages.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 23 of 25
24
Seventeenth Affirmative Defense
Plaintiffs' claims for damages are barred, in whole or in part, because their
alleged damages are speculative, cannot be ascertained with reasonable certainty, and
are incapable of proof.
Eighteenth Affirmative Defense At all times relevant, Cox acted in good faith and without knowledge of any
wrongful acts or intents.
Cox reserves the right to raise such other and further defenses as may become
applicable as the result of discovery in this matter, or the presentation of testimony at
trial.
Respectfully Submitted,
s/ D. Kent Meyers________________________ D. Kent Meyers, OBA #6168 Elizabeth Barnett LaBauve, OBA #21102 CROWE & DUNLEVY, P.C. 20 North Broadway Ave., Suite 1800 Oklahoma City, OK 73102 Telephone: (405) 235-7729 Facsimile: (405) 272-5245 E-mail: [email protected] [email protected]
Bruce D. Sokler (pro hac vice) Robert G. Kidwell (pro hac vice) Helen Gerostathos Guyton (pro hac vice) MINTZ, LEVIN, COHN, FERRIS, GLOVSKY AND POPEO, P.C. 701 Pennsylvania Ave. NW, Suite 900 Washington, DC 20004 Telephone: (202) 434-7303 Facsimile: (202) 434-7400 E-mail: [email protected] [email protected] [email protected]
Counsel for Defendant Cox Communications, Inc.
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 24 of 25
25
CERTIFICATE OF SERVICE
I hereby certify that on this 23rd day of January, 2013, I electronically transmitted the attached document to the Court Clerk using the ECF System for filing. Based on the records currently on file, the Clerk of Court will transmit a Notice of Electronic Filing to the following ECF registrants:
Cynthia G. St. Amant A. Daniel Woska Allen Kanner Jason H. Kim Joe R. Whatley Jr. Michael J. Blaschke Rachel Lawrence Mor S. Randall Sullivan Todd M. Schneider Joseph C. Peiffer Garrett W. Wotkyns
Wilfred K. Wright Jr. Drew T. Legando Jack Landskroner Michael C. McKay Adam Wolf Alan McQuarrie Mansfield Benjamin D. Reichard Gregory Pius DiLeo Jeffrey P. Berniard
s/ D. Kent Meyers________________________ D. Kent Meyers
Case 5:12-ml-02048-C Document 8 Filed 01/23/13 Page 25 of 25