Journalists Speak Out On Suit Against Altice Over News 12 Cuts

SUFFOLK COUNTY, NY — Journalists are coming forward to speak out about an escalating dispute over staffing cuts at News 12 that they believe will leave the public woefully underserved.

At the heart of the issue is the alleged violation of a merger agreement that ensued after Altice, a Netherland's 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 lawsuit was filed in the Court of Chancery of the State of Delaware on Sept. 4 by the Dolan family "for failure to abide by promises the company made in a 2016," and for "equitable fraud," according to a release.

The suit alleges that Altice USA "ignored commitments" made as part of its merger with Cablevision Systems Corporation, which closed in June, 2016 to the tune of $17.7 billion.

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."

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

Patrick Dolan, president of News 12 at the time of sale to Altice USA, a shareholder in News 12’s parent company, Cablevision, and currently a senior network advisor for News 12, spoke out: "As we negotiated with Altice on the sale of Cablevision in 2016, our family was committed to protecting the superb reputation and continued independence of News 12 and its employees." Unfortunately for the employees of News 12, he said, "Altice has disregarded its solemn promise to operate News 12 according to the News 12 business plan, as shown in the layoffs of approximately 70 employees in 2017 and its intent, expressed in writing, to conduct further layoffs starting this week. The purpose of today’s lawsuit is to enforce Altice’s contractual commitment to stand by the employees of News 12.”

And now, journalists are speaking 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.

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."

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