Dolan Files Reply In Suit With Altice Over News 12 Staffing

LONG ISLAND, NY — The Dolan family and two veteran news anchors headed back to court Wednesday to file a reply in further support of their request for a temporary restraining order against Altice USA to prevent further "erosion" and staffing cuts at News 12, according to the Dolan family, which has alleged that Altice engaged in a "gotcha" moment.

The original lawsuit was filed Sept. 4 in the Court of Chancery of the State of Delaware by the Dolan family against Altice USA for what they deemed "failure to abide by promises Altice made in a 2016 merger agreement and for equitable fraud, among other claims."

In 2016, Altice USA acquired News 12 as part of the $17.7 billion purchase of Cablevision from the Dolan family.

"To induce Cablevision shareholders to include News 12 in the merger, Altice USA unambiguously agreed to operate News 12 substantially in accordance with the News 12 business plan through at least the end of 2020. To ensure the highest quality journalism and productions, the business plan provided News 12 would employ full-time equivalent headcount of 462 people throughout this period.

Turning its back on its prior representations and promises, in 2017 Altice eliminated approximately 70 news 12 positions — in direct violation of News 12’s agreed-upon business plan incorporated into the merger agreement," the Dolan family said in a release.

Recently, they added, Altice "was on the precipice of terminating dozens more News 12 employees, including well-respected news anchors Colleen McVey and Danielle Campbell, threatening to irreparably harm the quality of local news coverage in the News 12 area and the livelihoods of News 12’s employees. Targeting two women, both dedicated 30-year veterans of News 12 – suggests Altice is engaging in age bias and/or gender as well as thinning News 12 staff."

In a release about the latest court action, the Dolans alleged Altice's "admission to a 'gotcha' moment. They promised to maintain staffing levels in order to acquire News 12 in 2016 then turned around and laid off 70 in early 2017. Altice does not deny that it made the promise solely to induce the Dolan family and other stockholders to sell News 12. 'Too bad,' says Altice coldly, without shame or remorse, that employees are losing jobs and the quality of local journalism will suffer," the Dolans said.

Campbell has also issued a statement about why she decided to pursue litigation: "News 12 Long Island has always been a family. We care about each other and we care about Long Island. That’s why my colleagues and I have devoted our careers to creating a news organization that Long Islanders love and have come to trust. We break unique stories because of who we are and where we live," she said. "For almost 30 years, I was proud to walk in the door here at News 12 because of my 'family’s' dedication to journalistic integrity. That changed with the shift in News 12 ownership in 2016. I am disheartened that it has come to this. However, by joining the lawsuit my hope is that our viewers will again benefit from our professional news coverage with the personal touch we have always provided."

She said she was unable to comment further due to pending litigation.

Patrick Dolan, president of News 12 at the time of its sale to Altice USA, commented on the proceedings: “The lawsuit was filed to protect journalists’ jobs and the quality of the programming at News 12. We have now been joined in this action by two long serving anchors of News 12, Colleen McVey and Danielle Campbell. I sharply disagreed with last year’s layoffs. I was there at the time and argued then with Altice against the proposed cuts. I chose to stay on and find ways to minimize the damage to the journalistic integrity of the News 12 product. Had I known then that Altice would continue to place profits over good journalism, contrary to the spirit of the merger agreement, I would have taken this legal action sooner.”

At the heart of the issue is the alleged violation of a merger agreement that ensued after Altice, a Netherlands based company, acquired News 12 in 2016 as part of the sale of Cablevision. However, the Dolan family, which owned the company before the sale, has since maintained that Altice did not adhere to a condition of terms outlined, which stated that News 12 staffing levels be maintained.

To that end, Charles Dolan, founder and former CEO of Cablevision, as well as the Dolan family and current News 12 anchor Colleen McVey, filed a lawsuit and sought a permanent injunction against Altice USA, to protect News 12 staffers and enforce the 2016 merger provisions.

The amended lawsuit filed earlier in October included Campbell, a release from the Dolan family said.

Plaintiffs in the lawsuit originally included Charles Dolan, founder and former CEO, Cablevision; Helen Dolan; James Dolan, former CEO of Cablevision; Patrick Dolan, president of News 12 at the time of the sale; and Colleen McVey, current employee of and news anchor with News 12 Networks.

Campbell is an Emmy and Edward R. Murrow award-winning news anchor who has worked at News 12 for nearly 30 years, specializing on environmental issues. Altice slated Campbell's reporter position for elimination in the next round of layoffs, the Dolan family said in a release.

"The targeting of Campbell, 55, and veteran anchor McVey, 60 — both 30-year veterans of News 12 — suggests that Altice is engaging in age discrimination as well as thinning out the News 12 staff. Colleen and Danielle are passionate journalists who have dedicated their careers to serving Long Islanders. Targeting them because certain executives want a so-called 'fresh look' is reprehensible and a disservice to the L.I. public," Patrick Dolan said.

Plaintiffs say they joined together to file the suit with an eye toward protecting employee jobs, which are in jeopardy, as well as quality of news coverage at News 12, which operates stations in New York, Connecticut and New Jersey.

According to a release from the Dolan family, in 2016, "in order to induce the sale, Altice USA unambiguously agreed to operate News 12 substantially in accordance with the News 12 business plan through at least the end of 2020.

"The business plan provided that News 12 would employ full-time equivalent headcount of 462 people during that time period. . . Altice expressly recognized, accepted and agreed, in adhering to the News 12 business plan, to incur cumulative losses of up to $60 million, which has not occurred, in the operation of News 12 over the period to maintain the network's existing employee base, as well as the quality and legacy of News 12," the release said.

But that agreement has not been adhered to, according to the Dolans.

Journalists have spoken out about the staffing slashes. "I am part of the Dolan family lawsuit because it is the right thing to do for my co-workers and, I believe, for the future of News 12 as we know it," McVey said. "I have been part of the News 12 team for more than 30 years. From the beginning, we were dedicated to providing Long Island with comprehensive local news. I am very proud of what we have accomplished, and I am committed to continuing that high standard of responsibility and excellence."

In light of the ongoing litigation, McVey was unable to comment further.

The Fair Media Council also petitioned the New York State Public Service Commission, urging a "thorough and comprehensive review . . . of the merger agreement between Altice and Cablevision to ensure it is being upheld in law, in spirit and in good faith."

The Fair Media Council, a "media watchdog for the New York metro area and headquartered on Long

Island, said, in a letter to Kathleen H. Burgess, secretary to the Commission, that business plan specifically outlines how News 12 would operate through 2020.

"On its face, the plan guarantees staffing numbers and salaries. In reality, the plan was there to guarantee our local news stayed local, along with a tip of the hat to the legacy built by the Dolans — who, by the way, pioneered local cable news and set the standard communities across America attempt to emulate. Local news necessitates boots-on-the-ground, people from the community reporting on the community. In this regard, you simply can't fool the public. News 12 viewers are used to names and faces they know bringing them information about whats happening in their backyards. Eliminating the people who work marathons to bring you election results, brave the elements to give live weather reports during hurricanes and nor'easters, and who are on site when major tragedies occur? No, that's what makes local news work. Those people, who have earned their stripes and the trust of the viewers, cannot be replaced with Cheddar feeds, generic weather loops and AP reports," the letter said.

The Fair Media Council said historically, it has had "one complaint about News 12 and it was this: Do more. . . News 12 is currently way understaffed, probably by one-third of what it needs to be."

The Fair Media Council has also put forth public awareness op eds on the situation.

Drew Scott, who signed off from News 12 in 2017 after more than 20 years, also expressed his concerns.

"By encouraging experienced reporters and anchors that Long Island viewers have come to love and trust to leave, they are saying they don't care about their viewers and are giving them little incentive to continue subscribing to Optimum channels," Scott said. "It's very disappointing."

Altice USA responded in a statement: "This lawsuit is completely without merit and we will defend against it vigorously. Our News 12 team is comprised of the most talented journalists and staff in the news business and Altice USA remains committed to offering meaningful news coverage, enhancing our news product for our local communities, and growing our audience," the statement read.

"Under Altice USA's leadership, News 12 remains the most viewed TV network in Optimum households. This achievement reflects the uniqueness of News 12's hyperlocal content and the high value viewers place on news that is tailored to their neighborhoods. Local news has never been more important, and we're proud that News 12 continues to be a trusted source of news and information in the communities we serve," the statement continued.

In addition, Altice said News 12's ratings and digital growth show that viewers are responding positively to its efforts. "News 12's digital viewership is growing, experiencing a nearly 20 percent increase in average unique visitors across all digital platforms in the first half of 2018 compared to full-year 2017. The network also saw an increase of more than 50 percent in total average video views on News 12's websites during the same period," the statement read.

Altice also announced that it will build new, multi-million dollar TV and digital studios for News 12 in its Bethpage building.

Dolan said he and his family negotiated "in good faith" to add protective covenants in the merger agreement regarding News 12 for the benefit of the viewing public and network employees and intends to hold Altice accountable for commitments Altice made at the time of the sale.

According to the release, Altice recently informed the Dolans that it is on the verge of terminating dozens more News 12 employees, including McVey, "threatening to irreparably harm the quality of the local news content that News 12 creates, the livelihoods of News 12's employees, and the legacy that the Dolan family protected through explicit merger agreement provisions."

The Dolan family also blasted president of Altice USA News, Michael Schreiber, alleging that he'd said, "the reason for the impending dismissal of McVey, 60, in violation of Altice USA's written representations, is that he is looking for a 'fresh look.'"

When asked about that allegation, Altice said again: "This lawsuit is completely without merit and we will defend against it vigorously."

The Dolan Family and McVey are represented by Rob Hoffman and John Reed, partners at DLA Piper LLP.

Across Long Island, fellow journalists also banded together in support. The Press Club of Long Island, the local chapter of the national Society of Professional Journalists, issued a statement saying it opposes any planned newsroom staffing cuts at News 12 networks.

"The Press Club believes firmly that News 12's staffing levels must be maintained, the statement read. News 12 Long Island, the Press Club added, "has served its tens of thousands of viewers admirably since it began reporting in 1986, covering the major stories that have affected our island, from plane crashes to hurricanes to 9/11, while never forgetting that coverage of house fires and school picnics is also vitally important to viewers . . . The news industry has been battered in recent years by profit-seeking corporations that swoop in, reduce news staffs to shells of their former selves and then sell. That business model might be good for corporate tally sheets, but it is terrible for readers and viewers."

Altice did not respond to a request for comment about the most recent Dolan response in court.

However, earlier in October, Lisa Anselmo, media representative for Altice, responded to the amended lawsuit and Dolan claims: "This lawsuit is without merit and paints an extremely inaccurate representation of our business. It is also surprising that the Dolan family would now challenge the strategic and organizational decisions that Patrick Dolan led during his two and a half years with the company as President of News 12. Altice USA continues to invest in News 12 and we are very proud that under our leadership, News 12 is the most viewed TV network in Optimum households. We are excited about the future of News 12 and investing further in order to grow its hyperlocal news audience."

After Altice filed its response to the lawsuit, Anselmo commented: "As it relates to the 'fresh look' allegation about Michael Schreiber, it's is completely baseless and untrue."

An excerpt from Altice's brief on that point said the fresh look relates to the company's new Bethpage studio, new logo, and new set design: "One of the goals of News 12's modernization and growth plan is to create a 'fresh look' on its broadcasts to convey innovation and modernism on its TV and digital platforms, including by adopting a new logo and graphics package, set enhancements, and investing in a state-of-the-art broadcast studio," Altice said. "Plaintiffs insinuate that these efforts included the planned termination of Ms. McVey for discriminatory reasons. This charge is both baseless and legally irrelevant to their claims. Altice categorically denies that it has engaged in any discriminatory conduct."

In addition, in regard to Patrick Dolan, Altice said, in its filing: "The indisputable facts show that, for at least 18 months before bringing this lawsuit, plaintiff Patrick Dolan not only assented to, but in fact led, the very conduct plaintiffs now seek to enjoin. Shortly before the acquisition closed, Altice management, including Mr. Dolan, began to discuss 'hubbing,' a plan to centralize many of the production and off-air functions of the various News 12 outlets while continuing to gather and report news locally."

The plan was part of an effort to modernize and strengthen News 12's local news operations, the filing said. "Pursuant to this plan, approximately 60 positions were eliminated, bringing the number of full-time equivalent employees at News 12 from approximately 450 to 390. Plaintiff Patrick Dolan played a key leadership role in the development and implementation of the hubbing plan. He participated in the design and planning for hubbing in the summer and fall of 2016. In particular, Mr. Dolan helped to: structure the hub consolidation, determine the number of positions that would be eliminated pursuant to the restructuring, and shape the severance packages for the affected employees."

Dolan, Altice said, "personally announced the plan to News 12 employees on October 6, 2016, when he gave a presentation to some of the News 12 staff, and he sent a memorandum that same day explaining that 'taking these steps will ultimately strengthen News 12 and assure our future.'"

Anselmo said Altice's news business is a key part of its strategy, including the creation a dedicated United States news division, "having been staffing up, invested in Cheddar, acquired i24," and continuing to enhance the News 12 offerings, as well as expanding News 12 Connecticut and Hudson Valley to more areas in those regions.

News 12, she said, "remains the most viewed TV network in Optimum households and has experienced a nearly 20 percent increase in average unique visitors across digital platforms compared to 2017. Our ratings and digital growth show that viewers are responding positively to our efforts at News 12 and we have some exciting plans in store."

Patch photo courtesy Danielle Campbell.