Plaintiff, Plaintiff, Nielsen Audio, Inc. ("Nielsen Audio"), by and
Transcription
Plaintiff, Plaintiff, Nielsen Audio, Inc. ("Nielsen Audio"), by and
Case 8:15-cv-02435-JDW-EAJ Document 1 Filed 10/15/15 Page 1 of 21 PagelD 1 IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION NIELSEN AUDIO, INC., Plaintiff, Civil Action No: v. BUBBA CLEM a/k/a BUBBA THE LOVE SPONGE and BUBBA RADIO NETWORK, INC., Defendants. COMPLAINT (Injunctive ReliefSouAritt) Plaintiff, Nielsen Audio, Inc. ("Nielsen Audio"), by and through its undersigned attorneys, hereby files its Complaint against Defendants, Bubba Clem and Bubba Radio Network, Inc., and in support thereof states as follows: NATURE OF THE ACTION 1. This is an action for fraud, violation of Florida's Deceptive Practices Act, tortious interference with contractual and business relations and Nielsen Audio is 2. measurement and has been from the Defendants' rankings for the so for one more purposeful FTL_ACTIVE 4647860.4 panel to leading conspiracy. firms in the field of audience than 50 years. Nielsen Audio's claims in this action arise efforts to Tampa-St. Petersburg the Nielsen Audio survey of the nation's and Unfair Trade manipulate radio market by, the radio audience estimates and station among other things, paying distort the radio audience estimates in their favor. members of Document 1 Case 8:15-cv-02435-JDW-EAJ Filed 10/15/15 Page 2 of 21 2 PagelD THE PARTIES Nielsen Audio is 3. Delaware a with its corporation located at 9705 Patuxent Woods Drive, Columbia, Maryland, principal place 21046. Nielsen Audio is authorized to and does transact business in the State of Florida. Nielsen Audio Arbitron Inc. prior to September 30, Todd Allen Clem and, upon information and information and belief, Bubba Clem is Bubba Clem is a radio including in Tampa, Florida on existing under the West Nassau "Bubba belief, legally changed his citizen of the State of Florida who appears regularly laws of the State of Florida with its on a Clem") name to Sponge" as born Upon residing in St. Petersburg. nationally syndicated is ("BRN") a principal place radio show and its 2015 Florida Profit the sole officer and director of BRN. Bubba Clem. was in 1999. radio show corporation organized syndicates Corporation the show Annual Upon information and belief, BRN Bubba Clem and BRN are hereinafter and of business located at 5021 owns and throughout the Street, Tampa, Florida 33607. Upon information and belief, the BRN According known WBRN Bubba 98.7 and in other markets in this District. the "Bubba the Love United States. by a Sponge (hereinafter Defendant Bubba Radio Network, Inc. 5. produces personality was 2013. Bubba Clem a/k/a Bubba the Love 4. of business Report, Bubba Clem is is owned and controlled collectively referred to as the "Defendants". JURISDICTION AND VENUE 6. This Court has 1332 in that this is exceeds an subject matter jurisdiction this case pursuant to 28 U.S.C. action between citizens of different states and the amount in controversy $75, 000. FTLACTIVE 4647860.4 over 2 Filed 10/15/15 Page Venue is proper in this District pursuant to 28 U.S.C. 1391 Document 1 Case 8:15-cv-02435-JDW-EAJ 7. grounds that: Defendants (i) reside and/or maintain place a subject are place in this personal jurisdiction of business in this District; solicit business in this District; and took to (iv) substantially 3 of 21 in this District; (iii) giving (ii) (c) on the Defendants regularly Defendants all of the events and (b) 3 PagelD do and rise to this action District. FACTS COMMON TO ALL CLAIMS The Integrity of the Nielsen Audio Audience Estimates is Tremendous Importance to the Radio Industry Nielsen Audio is 8. media an international media and industry, advertising agencies measuring local market radio audiences For 9. more research firm serving the Nielsen Audio's business includes and advertisers. across marketing of the United States. than 50 years, Nielsen Audio and its predecessor Arbitron has been a leader in its field and is well-known for its radio audience estimates. Nielsen Audio collects radio audience PPM® listening ("PPM"), an data by various means station the its Portable People Meter or electronic device that detects codes embedded within broadcasts from which Nielsen Audio formulates its detailed estimates throughout including through day. Using rankings which it as to what a participating panelist this information, Nielsen Audio publishes in periodic reports produces audience and creates databases is listening to estimates and comprising these estimates, reports and other works. 10. Nielsen Audio's audience estimates, reports and databases authorship and proprietary written agreements. works which throughout FTLACTIVE 4647860.4 original works processors and sales the United States, of licensed to subscribers pursuant to the terms of Nielsen Audio's subscribers include broadcasters, advertisers, agencies, consultants, third-party radio markets are are including 3 representatives the in the radio Tampa-St. Petersburg advertising industry in Florida radio market. These audience estimates purposes including: decisions; are prices set acquire personalities also used are by a advertisers and to by Page radio broadcasters for syndicated program; on 4 of 21 a on and remove of variety how much to pay for their broadcasts; to make put 4 PagelD programming from the air; and to Nielsen Audio's audience estimates and station determine how much to pay on-air talent. rankings used advertising time for determine which radio to widely to determine whether to syndicated programs; to Filed 10/15/15 Document 1 Case 8:15-cv-02435-JDW-EAJ advertising agencies to and plan advertising budgets make decisions about where and when to advertise. In the top radio 11. information using its proprietary device that is portable embedded in program markets, including Tampa-St. Petersburg, Nielsen Audio obtains a worn or broadcast being listened electronic measurement device, the PPM. The PPM is carried within or an to and creates a the survey by log can identify individual survey participant was exposed throughout the day. motion detect when the device is sensor when it is into an to stationary. After being worn or Nielsen Audio 12. carried by the survey no particular radio market to be panelists who agree to trained how to use randomly demographically representative participate signals in the survey are for their time and effort. 4 a built in and participant goes when the survey signals. in selects the PPM panelists of the in that market. provided population a with PPM devices, and are The are the PPM and transmit the data to Nielsen Audio. compensated by Nielsen Audio FTLACTIVE 4647860.4 and detected. The motion, the device otherwise present to hear the broadcast scientifically are The PPM devices have inactive mode to minimize the chance of detection of audio or radio station and the the broadcasts to which the pre-determined period in which there is a participant is not carrying the PPM The identify the of instances in which those codes information is then transmitted to Nielsen Audio which small, It detects inaudible codes participant. audio stream which a panelists Nielsen Audio 13. to ensure that these best the ensure reflects the panelists comply is the procedures keeps panelists' the identity with its panelist's listening that the data incorporated actual of the panelists procedures. Only Page 5 of 21 PagelD confidential and takes when a measures with panelist complies data included in the audience estimates. 5 This is to into the audience estimates is untainted and unbiased and listening These habits. Nielsen Audio and to its subscribers who rely on Nielsen Audio also goes to great 14. Filed 10/15/15 Document 1 Case 8:15-cv-02435-JDW-EAJ the safeguards integrity lengths estimates with respect to the actions of its subscribers. to of utmost are to importance of the process. maintain the integrity of its audience All of Nielsen Audio's station license agreements contain language expressly forbidding subscribers, including their agents, staff, and other employees its survey or participants, contacting those distort the results of the survey. The with the impartiality estimates for 15. ratings, a To further detailed ensure penalties for or a being committing any act that could influence or station found to have interfered subscribing de-listed (i.e. excluded from the audience that broadcasters avoid any acts that could publishes guidelines credibility and impartiality 16. of to discover the period of time). Nielsen Audio provides individuals of the survey include identity talent, from attempting contractors such as on-air and a "PPM Ratings procedures Distortion & Ratings possibly distort the Bias Handbook" that for broadcasters to follow to help maintain of its audience estimates, Broadcasters and on-air radio personalities are aware gain that there is a temptation competitive advantage influence the audience estimates and station rankings radio market. It is standard for broadcasters to train their on-air talent as programming Audio and sales panelists or to FTLACTIVE 4647860.4 the industry practice employees in the to importance of a avoiding otherwise act in any way that could bias the 5 to in the as well all contact with Nielsen ratings results. Case 8:15-cv-02435-JDW-EAJ Filed 10/15/15 Document 1 Page 6 of 21 PagelD 6 Beasley Broadcast Group Carries Bubba Clem's Program in Tampa Non-party Beasley Broadcast Group, 17. approximately in the 53 radio stations in 12 markets Inc. throughout ("Beasley") owns the United States. and operates Beasley's stations Tampa, Florida market include WYUU-FM; WRBQ-FM; WQYK-FM; WLLD-FM; WBRN-FM; and WHFS-AM. 18. Beasley broadcasts the "Bubba the Love WBRN-FM 98.7 pursuant to the terms of Beasley changed the call letters of its radio program Sponge" contract with the BRN. a Tampa station In on station fact, in February, 2015, to WBRN-FM to incorporate the name Bubba Radio Network into its brand. 19. a Beasley subscribes to Nielsen Audio's PPM radio audience estimates pursuant to Radio Station License Estimates dated 20. Agreement September 24, 2013 License Beasley's to Receive and Use (the "License Agreement influence the Nielsen Audio survey results employees and agents from contacting any survey influence or attempting participant Bubba Clem is Petersburg radio market. for broadcast streaming FTL_ACTIVE with Nielsen Audio prohibits attempt any to to learn the and from engaging identity of any survey participant, in any other act that has the from potential to distort the results of the survey. 21. via Agreement"). whatsoever, expressly forbidding the subscriber, its Bubba Clem Engaged in syndicated PPM Data and [Nielsen Audio] audio. 4647860.4 a a Scheme to Distort the Ratings well-known and controversial radio Bubba Clem's program is on numerous In stations in the Tampa-St. produced in his own facility in Tampa and throughout the is United States and is also available Florida, Bubba Clem's show is carried 6 personality on WBRN-FM in Tampa; Case 8:15-cv-02435-JDW-EAJ WRXK-FM in Fort Myers, Filed 10/15/15 Document 1 7 of 21 Page PagelD 7 Beach-Destin; WTRS-FM in Ocala; WZLB-FM in Fort Walton WBGF-FM in West Palm Beach; and WSJZ-FM in Melbourne. Bubba Clem has been 22. a radio broadcaster for information and belief, Bubba Clem is well to the can of any radio program, success command rates and higher of the aware more importance 30 years. of the Nielsen Audio that programs and stations with specifically, generate approximately advertising revenue than competing Upon ratings high ratings stations with lower rated programs. Bubba Clem is also well 23. that the integrity of the Nielsen Audio ratings broadcaster importance in the radio industry and that no anything that could affect the ratings or cause bias in any way. utmost do aware Upon information 24. from Jason Fuller one ("Fuller"), a and belief, the devices Fuller were was a mutual to the acquaintance Bubba Clem learned in its survey of panelists in the Tampa-St. Petersburg market and that 4 PPM members of the to Cooperating Panelist's household. Since of Bubba Clem and the Bubba Clem's initial contact with the help July 29, 2015, personality should participate by Nielsen Audio "Cooperating Panelist") being delivered about other radio strong supporter of Bubba Clem's show, that the household of of his listeners had been selected (hereinafter, on or or is of Cooperating Panelist, Cooperating Panelist to recruit the Fuller facilitated Cooperating Panelist to Bubba Clem manipulate the Nielsen Audio audience estimates. In 25. messages sent Panelist to a series of throughout July and August, 2015, manipulate Nielsen Audio in-person meetings, phone conversations ratings the PPM Cooperating Panelist to 7 numerous Bubba Clem offered to pay the of his household's for Bubba Clem's program about what he wanted the FTL_ACTIVE 4647860.4 monitoring and artificially do. and text Cooperating listening habits to inflate the provided detailed instructions Document 1 Case 8:15-cv-02435-JDW-EAJ Bubba Clem met with the 26. $300 per month once Panelist's Cooperating Bubba Clem help. Filed 10/15/15 Page 8 of 21 PagelD 8 Cooperating Panelist, telling him that he would be paid saw He later sent an a in his improvement ratings resulting promising text message bonus money, up to $400 per month more, if target results were the from the Cooperating Panelist achieved. Bubba Clem in fact paid the Cooperating Panelist a portion of the monies he promised to pay. Demonstrating his 27. that all concerned were at great risk, texts from his cell multiple WORD... This could ruin apparent reference to the awareness on plot to July 31, 2015, phone stating me. that his in part: B... THANK U. Cooperating distort the ratings was prohibited and Bubba Clem sent the Cooperating Panelist "U have to PROMISE NOT TO SAY A this will kill the bad again guys." Panelist's PPM devices, Bubba Clem texted: "We In an are so lucky to have those." Bubba Clem also 28. provided detailed instructions what other stations he should tune to from time to time the on same 31 and July station not increase the time, ratings August 1, 2015, Bubba Clem instructed the NOT LISTEN TO. EVER 102.5.. was Cooperating to avoid of competing programs. In which Bubba Clem's program on so as to the a creating suspicion but, "Here Upon information and belief, at series of text messages sent Cooperating aired, and told him Panelist about Panelist to listen to the are the stations you CAN 102.5 FM broadcasts one of Bubba Clem's main rivals. Bubba Clem boasted to the 29. knowledge motion of the PPM device which included sensing technology. could make it appear that he Panelist was FTL_ACTIVE Cooperating not carrying the 4647860.4 He described that was listening Panelist that he had detailed knowledge of how to circumvent the PPM's by using certain tricks the to Bubba Clem's show PPM device. 8 working even Cooperating when the Panelist Cooperating Case 8:15-cv-02435-JDW-EAJ manipulating the PPM device "Again, please take stated: want to loose (sic) them. On 31. Clem warned the Bubba Clem 30. urged down. It's offered to the so or it avoid seriously. lazy so we Panelist to try harder up Please buddy. stating, Please. I'm radios and other devices and have them Panelist to aid him in his his have them of the PPM manipulation own about "Got ratings. PagelD 9 caution while Audio. In text messages, he suspicion by Nielsen And don't get 9 of 21 Panelist to exercise August 9, 2015, apparently upset about important you get using to Cooperating Page SO PLEASE pay attention. U know I'll take Cooperating purchase those items so as Filed 10/15/15 Document 1 care drop a raw a of u.. in listenership, numbers paying Bubba We went today. u!!!" Bubba Clem then to the shipped directly Cooperating Bubba Clem did in fact online Amazon account and had them Don't long time. shipped to the purchase Cooperating Panelist's home to further his scheme. 32. including At all times relevant to these events, Bubba Clem Bubba Clem that he messages On at least Fuller. saying: was or we August 7, 2015, feeling pressured by "I've told me. the aided and abetted Cooperating Fuller. Bubba Clem Panelist in responded by others complained a to series of text relax. I agree. Too much drama. We have another way buddy to u to beat them. Don't be mad at And about was I've tried not to be pushy.... We all want the common thing. just all get all keyed up." 33. multiple Upon information and belief, Bubba Clem's activities Nielsen Audio panelists have, Bubba Clem's solicitations. In referring to Nielsen Audio who had just text they successful in that fact, falsified their actual listening in response Bubba Clem sent to the took it from him 9 Friday. to Cooperating Panelist, apparently and the PPM devices, he stated: "I need 1 of them. And FTLACTIVE 4647860.4 one in were u more than ever. I had a guy Cause he wasn't smart about it... Case 8:15-cv-02435-JDW-EAJ Now it's gone. lazy. And he didn't switch it up. 34. The substance of Bubba Clem's He got Filed 10/15/15 Document 1 10 of 21 Page So I need your 4 PagelD more than 10 ever buddy." accurate: Nielsen's internal Tampa-St. Petersburg preceding message procedures uncovered market—other than Nielsen on the date referred to data received from Cooperating removed from the survey results, and that PPM Panelist—that panelist's device Cooperating Panelist is a PPM panelist appeared suspect was in the and was taken away from him by by Bubba Clem in the message. Nielsen believes that additional PPM 35. to the panelists in other markets may have been part of Bubba Clem's ratings distortion scheme and has taken to measures flag and remove suspect listening data from its survey. Bubba Clem's Scheme is Exposed and he Admits Wrongdoing 36. In or Bubba Clem, the about mid-August, 2015, Cooperating Panelist and Fuller, the Clem's scheme to Nielsen Audio which 37. Nielsen Audio Panelist's PPM device and after weeks of discussions and texts between was remove Cooperating Panelist disclosed Bubba promptly commenced an investigation. able to detect the tainted data received from the Cooperating it from the data which otherwise would have been included in its audience estimates. 38. panelists Audio's The mere possibility that tainted listening data was submitted to Nielsen Audio and could have found its way into the audience estimates reputation as doubt about the well integrity as the value of the audience estimates and station of the Nielsen Audio ratings and requires Nielsen subscribers that it discovered and removed all of the affected data. FTLACTIVE 4647860.4 seriously 10 by harms Nielsen rankings Audio to as it raises reassure its 39. On about or Filed 10/15/15 Document 1 Case 8:15-cv-02435-JDW-EAJ September 21, 2015, Page 11 of 21 Nielsen Audio confronted Beasley the evidence referenced herein of Bubba Clem's attempts to distort the responded (i) by suspending Bubba Clem's live show its other stations, and (ii) by issuing on October 5, 2015, Bubba Clem's actions and sessions to address Nielsen Audio on-air talent such as ratings distortion and bias promising policies to Bubba Clem's live broadcast October 6, 2015, Bubba Clem was back on on the air WBRN-FM for a as to on implement training employees Exhibit A. total of 8 and Beasley days. Beasley stations all of the on Beasley press release to all of its Bubba Clem. A copy of that press release is annexed ultimately suspended ratings. a 11 with all of WBRN-FM, although it continued on air Bubba Clem's broadcasts condemning PagelD As of that air his program. 40. having On October had contact with listening activities. In a 6, 2015, Bubba Clem held Nielsen Audio PPM pertinent part, press conference in which he admitted a panelist Bubba Clem stated and as trying to influence that panelist's follows: address some recent allegations that have been levied against me... As you may have heard, I was contacted directly by a ratings panelist in the PPM measurement ratings deal, and I was accused of attempting to influence the listening actives of a particular panelist. And it's with deep regret and embarrassment that I face you directly and say that they're true. There's no excuses, the buck stops with me and I cannot tell you how humbled and how embarrassed I am. Even though Nielsen has confirmed that not in any way shape or form did my actions affect the ratings, it still is not acceptable and I I would like to personally take full responsibilities for what happened and subsequently the consequences that probably are here forward... There's no excuses, there's nobody to blame, I am the person to blame and I'll accept whatever happens moving forward... A video of Bubba Clem's statement to the press is located at https://www.youtube.com/watch?v=ikQ3PgyPTEQ. 41. To avoid even the appearance of doubt as to the integrity of its ratings and to eliminate any conceivable bias in favor of WBRN-FM due to Bubba Clem's actions, Nielsen Audio de-listed Beasley's FTLACTIVE 4647860.4 station WBRN-FM from its 11 September 2015 reports. Case 8:15-cv-02435-JDW-EAJ 42. to one radio Notwithstanding egregious example industry. Based concern about the of panel Filed 10/15/15 developments, including tampering, The viability 12 of 21 Bubba Clem's PagelD 12 public admission has the entire as actions, Nielsen Audio's subscribers have expressed possibility integrity of Nielsen Audio's and to the Page Nielsen Audio has been harmed of the survey and the integrity industry these upon Bubba Clem's activity by Bubba Clem. to the radio Document 1 of additional ratings distortion audience estimates, which is essential of Nielsen Audio's business, has been called into question. Nielsen Audio's 43. has been reputation and the reputation damaged irreparably tool in the industry possibility exists for Bubba Clem and those panelists and PPM data to his manipulate the of its ratings reports and continues to be working in conjunction as an damaged as unbiased long as the with him to contact PPM advantage. COUNT I Fraud Clem and BRN) (Bubba Nielsen Audio repeats the 44. through 43 45. above as if fully This is general factual allegations contained in paragraphs 1 set, forth at length herein. a cause of action seeking money damages against Bubba Clem and BRN for fraud. Bubba Clem, 46. contacted help acting multiple Nielsen Audio on his own PPM survey panelists him tamper with the PPM survey results and Nielsen Audio. FTL_ACTIVE 4647860.4 behalf and 12 on behalf of BRN, for the purpose of provide false and knowingly recruiting them to misleading information to Document 1 Case 8:15-cv-02435-JDW-EAJ ways that would FM and spent listening to his provided panelists with equipment to manipulate the The false and 48. Nielsen Audio was based provided by on were acting readings data recorded misleading by multiple panelists and BRN and who data overstate the time falsely as who were Page how to paid and instructed multiple panelists Bubba Clem 47. Filed 10/15/15 own 13 of 21 use PagelD the PPM devices in BRN program on WBRN- PPM devices. by these PPM devices was transmitted to under the dominion and control of Bubba Clem their agents and instrumentalities. This false and from PPM devices that Bubba Clem to his agents and 13 were manipulated according co-conspirators, including misleading to instructions but not limited to the Cooperating Panelist. 49. Bubba Clem, BRN and the false information to be overstate incorporated Bubba Clem's audience. would be relied upon by panelists recruited by Bubba Clem intended for this into Nielsen Audio's audience estimates to They artificially also understood and intended that this false information Nielsen Audio, Beasley and the radio advertisers and advertising agencies in the affected radio markets. 50. Nielsen Audio relied After audience estimates. cost on that falsified data in discovering irregularities in the reaching its initial September 2015 data, and after incurring substantial and expense, Nielsen Audio removed the fraudulent data from its internal calculation of listening estimates 51. As and a co- investigate the of ratings Audio was tampering, from its internal calculation of forced to detect and expend time, analyze the listening estimates, include the falsified data. FTL_ACTIVE 4647860.4 fraud. result of Bubba Clem's fraudulent actions and those of his agents and conspirators, Nielsen allegations generated new estimates that were unaffected by the Defendants' 13 effort and money to falsified listening data, and generate new remove that data estimates that did not Case 8:15-cv-02435-JDW-EAJ Nielsen Audio incurred additional harm to its 52. reassure Filed 10/15/15 Document 1 Page 14 of 21 reputation and expense falsified data was in having stopped, that its subscribers that Bubba Clem's scheme had been discovered and 14 PagelD removed, and that the September 2015 ratings the subscribers received to the were unaffected. 53. than By reason of the foregoing, was damaged were of such Nielsen Audio in amount not less an $1, 000,000, the exact amount to be determined at trial. The actions of Bubba Clem and of BRN 54. malicious nature that Nielsen Audio is entitled to the Defendants and others amount of such similarly situated from money award of punitive engaging damages against Tortious through 43 respectfully demands Bubba Clem and BRN in 56. in order to deter damages an judgment Interference if fully set forth at This is a cause for compensatory and amount to be decided at trial and appropriate. COUNT H with Business and Contractual Relations With (Bubba Clem and BRN) Nielsen Audio repeats the as wanton and in such conduct in the future, the for any and all such further relief as this court deems necessary and 55. willful, punitive damages to be determined at trial. Wherefore Nielsen Audio punitive an a general factual allegations Beasley contained in paragraphs 1 length herein. of action seeking money damages against Bubba for their tortious interference with Nielsen Audio's contractual and business Clem and BRN relationships with Beasley. 57. Nielsen Audio and Beasley are parties to a series of agreements pursuant to which Nielsen Audio licenses its audience measurement reports and Beasley's radio stations FTL_ACTIVE 4647860.4 provides related services for throughout the United States, including WBRN-FM, 14 one of its stations in the Filed 10/15/15 Document 1 Case 8:15-cv-02435-JDW-EAJ Page Bubba Clem and BRN Tampa-St. Petersburg Florida radio market. 15 of 21 are PagelD parties to not 15 those agreements. Nielsen Audio and 58. Defendants relationship. Nielsen Audio and In 59. Beasley were Beasley longstanding business and contractual relationship of the business and contractual aware at all times relevant to this particular, between program is carried. Bubba Clem as action, Bubba Clem aware was that subscriber to Nielsen Audio's PPM audience estimates and that these a services include information about the such a Beasley. is and has been personalities have had was performance also aware of radio station WBRN-FM that Nielsen Audio's him, and others affiliated with the subscribers on which his subscribers, on-air radio are forbidden from strictly attempting to identify, contacting or in any way influencing Nielsen Audio panelists. 60. Despite this knowledge, behalf of BRN, communicated with and systematic basis, directly influencing the panelists' listening Clem's share of the radio As 61. contractual through a Bubba Clem Nielsen Audio multiple others working habits and intentionally, on his panelists with Beasley has been harmed. September ratings reports. distortion activity Bubba's Clem's actions FTLACTIVE 4647860.4 an and ongoing on and so that Bubba listening audience would appear larger than it actually is. investigations and expend ratings on the PPM devices BRN, Nielsen Audio's business and This conduct caused breach of its License Agreement with Nielsen Audio which resulted in the FM from the individually behalf, with the express purpose of manipulating result of the actions of Bubba Clem and relationship both resources to and to are Nielsen Audio and Beasley were Beasley de-listing to be in of WBRN- each forced to conduct determine the facts and the full extent of Bubba Clem's explore remedial yet to be determined. 15 measures. Other potential consequences of Case 8:15-cv-02435-JDW-EAJ 62. less than By reason of the Filed 10/15/15 Document 1 foregoing Nielsen Audio has suffered 16 of 21 damages in an PagelD 16 amount not $1, 000, 000, the exact amount to be determined at trial. The actions of Bubba Clem and of BRN 63. malicious nature that Nielsen Audio is entitled to the Defendants and others amount of such similarly an situated from of such were willful, damages in award of punitive engaging a wanton and order to deter in such conduct in the future, the punitive damages to be determined at trial. Wherefore Nielsen Audio punitive Page money damages against Bubba respectfully demands Clem and BRN in an judgment for compensatory and amount to be decided at trial and for any and all such further relief as this court deems necessary and appropriate. COUNT HI Tortious Interference With Business and Contractual Relations With PPM Panelists (Bubba Clem and BRN) Nielsen Audio repeats the 64. through 43 as if fully set forth at This is 65. a cause factual allegations contained money damages general in paragraphs 1 length herein. of action seeking and injunctive relief against Bubba Clem and BRN for their tortious interference with Nielsen Audio's contractual and business relationships with its PPM panelists. 66. Defendants Nielsen Audio has business and contractual relationships with its PPM of these business and contractual relationships between Nielsen Audio were aware Bubba Clem and BRN and its PPM panelists. relationships between Nielsen Audio and its PPM 67. Bubba Clem, both interfered with the business FTL_ACTIVE 4647860.4 individually relationships are not parties to the business and contractual panelists. and on behalf of BRN, intentionally and between Nielsen Audio and its PPM 16 panelists. willfully panelists. Case 8:15-cv-02435-JDW-EAJ Panelists who consent to participate according to Nielsen Audio's 68. By contacting listening PPM and their business As investigation a and Audio forced to them to as remove use the PPM device the PPM device in had they distorting with Nielsen Audio, agreed a the with the damaging with Nielsen Audio. was forced to conduct In at least that data from its audience estimates. internally revise was its audience estimates and issue one a new an the Defendants' by instance, Nielsen report in which one de-listed form the survey. By reason of the foregoing Nielsen Audio has suffered damages 70. 17 PagelD intentionally interfered result of this interference, Nielsen Audio subscribers, Beasley, in amount not an $1, 000, 000, the exact amount to be determined at trial. The actions of Bubba Clem and of BRN 71. malicious nature that Nielsen Audio is entitled to the Defendants and others amount of such irreparable a contractual situated from of such award of punitive engaging a willful, damages wanton and in order to deter in such conduct in the future, the determined at trial. harm. For this reason, Nielsen Audio is also entitled to and permanently enjoining contact any Nielsen Audio panelists relationships with its panelists. FTL_ACTIVE 4647860.4 an were result of the above actions, Nielsen Audio has suffered and will continue to judgment preliminarily attempting to similarly punitive damages to be As 72. suffer instructing to determine which listener data may have been affected tampering was use Nielsen Audio with the express purpose of in the PPM survey relationships 69. less than panelists 17 of 21 compensated for their participation. data sent to Nielsen Audio, Bubba Clem and BRN panelists' participation its are by Page in Nielsen's PPM survey agree to instructions and different than directed maimer Filed 10/15/15 Document 1 17 or an Bubba Clem and BRN from order and/or contacting or to otherwise interfere with Nielsen Audio's Case 8:15-cv-02435-JDW-EAJ Wherefore Nielsen Audio punitive money court deems necessary and Page respectfully demands judgment and BRN in damages against Bubba Clem with temporary and permanent Filed 10/15/15 Document 1 injunctive an 18 of 21 PagelD 18 for compensatory and amount to be decided at trial relief and for any and all such further relief along as this appropriate. COUNT IV Conspiracy to Defraud (Bubba Clem and BRN) Nielsen Audio repeats the 73. through 43 74. for their as if fully set forth at This is conspiracy to 75. a cause general factual allegations of action seeking Bubba Clem and BRN were damages against money engaged To this in a conspiracy including but not avoid detection, even listening specifying to tune to Bubba Clem's program; even Fuller, to convince Nielsen Audio follow Bubba Clem's directions. FTL_ACTIVE 4647860.4 18 (iii) how to purchasing shipped to the Cooperating Panelist to Upon information and belief, Bubba at least (ii) so the acts resulting to vary the stations which stations other than WBRN-FM the device to defeat the PPM' s internal motion sensor, including limited to Fuller and at least his radio to WBRN-FM Panelist should select and those which he should avoid; and which Bubba Clem had to defraud Nielsen Audio end, Bubba Clem engaged in various deceptive and misleading data would overstate the time spent 77. Bubba Clem and BRN panelist with whom Bubba Clem admitted he was in contact. including instructing the Cooperating Panelist (i) so as to 1 defraud Nielsen Audio. Nielsen Audio PPM 76. paragraphs length herein. and distort the audience estimates with individuals one contained in Cooperating manipulate the PPM radios and other devices carry out his instructions. Clem also communicated with panelists to participate in his plan others, and to Defendants 78. overt actions in furtherance of the 79. less than among themselves and agreed Cooperating Panelist, Fuller and the By reason $1, 000,000, the of the 19 of 21 others, including but PagelD 19 not limited to conspiracy. foregoing, Nielsen Audio has suffered damages in amount not an exact amount to be determined at trial. malicious nature that Nielsen Audio is entitled to the Defendants and others amount of such Page to engage in unlawful acts and all undertook actual and The actions of Bubba Clem and of BRN 80. similarly situated an from were of such award of punitive engaging a wanton and willful, damages in order to deter in such conduct in the future, the punitive damages to be determined at trial. Wherefore Nielsen Audio punitive Filed 10/15/15 Document 1 Case 8:15-cv-02435-JDW-EAJ money respectfully demands Clem and BRN in damages against Bubba an judgment for compensatory and amount to be decided at trial and for any and all such further relief as this court deems necessary and appropriate. COUNT V Florida Deceptive and Unfair Trade Practices Act (Bubba Clem and BRN) Nielsen Audio repeats the 81. through 43 above against Florida's Fla. Stat. a cause of action FDUTPA and unfair or deceptive contained in paragraphs 1 or practices 19 relief and practices injunctive in accordance with ("FDUTPA"). methods of 501.204(1). FTLACTIVE 4647860.4 and unfair trade Practices Act acts allegations seeking money damages, declaratory prohibits "[u]nfair deceptive factual length herein. Bubba Clem and BRN for Deceptive and Unfair Trade 83. practices, if fully set forth at This is 82. relief as general competition, unconscionable in the conduct of any trade or acts or commerce." Case 8:15-cv-02435-JDW-EAJ As set forth 84. and product meet Filed 10/15/15 Document 1 Page 20 of 21 PagelD 20 above, Defendants are engaged in the radio industry and their services the definition of "trade commerce" or as defined by Section 501.203(8) of FDUTPA. Bubba Clem's acts described above 85. on behalf of BRN, to cause Bubba Clem's deceive all those in the radio published by Nielsen Audio industry who rely including those and on gain on who set advertising throughout the country as well as listening intended to was rates and make ratings. and of BRN. the audience estimates and station rankings programming Bubba Clem's actions were and other radio stations Beasley to advertisers. All of Bubba Clem's actions relative to this lawsuit 87. individually both deceived Nielsen Audio, and ratings tampering to enhance the value of his program and of BRN to that purchase his program by him, and for the financial personal gain decisions based upon the results of the Nielsen Audio designed intended the Nielsen Audio audience estimates to overstate the audience for his program for his 86. were were done on his own behalf behalf of BRN for their mutual benefit. Bubba's Clem's actions described herein constitute 88. a violation of Fla. Stat. 501.204(1). As 89. practices, a result of Defendants' Nielsen Audio has been deceptive, unconscionable irreparably harmed. and unfair acts and If Defendants' actions are continue, Nielsen Audio will suffer additional irreparable harm for which there is remedy no adequate at law. 90. of his allowed to Given the wrongdoing, totality of the circumstances Nielsen Audio has a Bubba Clem's substantial likelihood of claim. FTLACTIVE 4647860.4 including 20 success on public confession the merits of this Case 8:15-cv-02435-JDW-EAJ Nielsen Audio is entitled to 91. lawsuit for Document 1 injunctive pursuant to Fla. Stat. 92. By and arising damages in By an attorneys' out of the Defendants' of the foregoing, pursuant fees for to permanently enjoining and reason of the amount to be determined at foregoing, §501.211, practices Nielsen Audio is entitled to and BRN from Nielsen Audio is also entitled to no event less than costs as along its actual $1, 000, 000, the exact provided in §501.2105. respectfully demands judgment declaring that Bubba Clem and BRN in fees and costs order committing recover actions of Bubba Clem and BRN violate FDUTPA, for compensatory and attorney's an ratings. trial, plus attorney's fees and court Wherefore Nielsen Audio reasonable an amount to be decided at trial, with temporary and permanent for any and all such further relief as this court deems necessary and punitive an 21 the money award of its injunctive relief and appropriate. Mark J. Ragusa, Esq. Florida Bar No.: 0829633 GUNSTER, YOAKLEY & STEWART, P.A. 401 E. Jackson Street, Suite 2500 Tampa, FL 33602 (813) 222-6619; Fax: (813) 228-6739 E-mail: mragusa@gunster.corn Trial Attorneys for Plaintiff, Nielsen Audio, Inc. FTL_ACTIVE 4647860.4 21 prosecuting this and unfair deceptive restraining Bubba Clem amount to be determined at trial but in damages against PagelD that the actions of Bubba Clem and BRN violate this part and to any further such acts intended to distort the 93. reasonable 21 of 21 Page 501.2105. reason judgment declaring preliminarily relief recover Filed 10/15/15 JS 44 Filed 10/15/15 Document 1-1 Case 8:15-cv-02435-JDW-EAJ Page 1 of 2 PagelD 22 CIVIL COVER SHEET (Rev. 12/12) The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM) DEFENDANTS Bubba Clem a/k/a Bubba The Love Network, Inc. I. (a) PLAINTIFFS Nielsen Audio, Inc. of First Listed Plaintiff (b) County of Residence (EXCEPT IN U.S. County of Residence of First Listed Defendant (IN U.S. PLAINTIFF CASES) (c) Attorneys (Firm Name, Address, and Telephone Number) Mark J. Ragusa, Esq, Gunster, Yoakley & Stewart, P.A. 401 E. Jackson Street, Suite 2500, Tampa, FL 33602 (813) 222-6619 "X" in One Box Pinellas PLAINTIFF CASES ONLY) Attorneys (If Known) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an Only) (For Diversity Cases Only) O 1 0 3 U.S. Government Federal Plaintiff (U.S. Question Paro) Citizen of This State "X" in One Box for Plaintiff and One Box for Defendant) PTF Government Not a and Bubba Radio IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED. NOTE: II. BASIS OF JURISDICTION (Place an Sponge 0 1 DEF Pi PTF 1 Incorporated or Principal Place DEF 0 4 X 4 XI 5 0 5 0 6 0 6 of Business In This State 0 2 N 4 U.S. Government Defendant Diversity (Indicate Citizenship ofParties X 2 Citizen of Another State 0 2 Incorporated and Principal Place of Business In Another State in Item III) Citizen or Subject of a 0 3 0 3 Foreign Nation Foreign Country IV. NATURE OF SUIT (Place an "X" in One Box Only) TORTS n 110 Insurance PERSONAL INJURY n 120 Marine n 130 Miller Act n 140 Negotiable Instrument n 150 Recovery of Overpayment 0 310 0 315 Airplane Airplane Product Liability 0 320 Assault, Libel & & Enforcement ofJudgment 0 330 O 151 Medicare Act O 152 Recovery of Defaulted Student Loans 0 340 0 345 (Excludes Veterans) O 153 Other Contract Contract Product Liability Franchise Liability. LABOR Injury n 362 Personal Injury Medical Malpractice ovIL RIGHTS. 0 210 Land Condemnation n 440 Other Civil 0 220 0 230 0 240 0 245 0 290 0 441 Voting n 442 Employment n 443 Housing/ Accommodations n 445 Amer. w/Disabilities Foreclosure Rent Lease & Ejectment Torts to Land Tort Product Liability All Other Real Properly Injmy Liability PERSONAL PROPERTY 0 710 Fair Labor Standards A 370 Other Fraud Act 0 371 Truth in Lending 0 720 Labor/Management 0 380 Other Personal Relations 0 740 Railway Labor Act Property Damage 0 385 Property Damage 0 751 Family and Medical Product Liability Rights Product Liability 0 510 Motions to Vacate Sentence 0 530 General 0 535 Death Penalty 0 Other 0 448 Education 0 0 0 0 791 Employee Retirement Income Security Act Habeas Corpus: 0 463 Alien Detainee 0 446 Amer. w/Disabilities SOCIAL SECURITY 0 861 HIA (1395ff) n 862 Black Lung (923) n 863 DIWC/D1WW (405(g)) n 864 SSID Title XVI n 865 RSI (405(g)) Leave Act 0 790 Other Labor Litigation PRISONER PETITIONS Employment n 422 Appeal 28 USC 158 n 423 Withdrawal 28 USC 157 PROPERTY RIGHTS 0 820 Copyrights 0 830 Patent 0 840 Trademark Personal Product Marine Product 0 360 Other Personal REAL PROPERTY; 0 625 Drug Related Seizure of Property 21 USC 881 0 690 Other 0 368 Asbestos Personal Injury Product Liability Marine 0 350 Motor Vehicle 0 355 Motor Vehicle Stockholders' Suits Injury Product Liability 0 367 Health Care/ Pharmaceutical Liability Recovery of Overpayment of Veteran's Benefits O 160 O 190 O 195 O 196 0 365 Personal Slander Federal Employers' BANKRUPTCY. FORFEITURE/PENALTY PERSONAL INJURY False Claims Act State Reapportipnment Antitrust Banks and Banking 0 450 Commerce 0 460 Deportation 0 470 Racketeer Influenced and Corrupt Organizations 0 480 Consumer Credit 0 490 Cable/Sat TV 0 850 Securities/Commodities/ Exchange 0 890 Other Statutory Actions 0 891 Agricultural Acts 0 893 Environmental Matters 0 895 Freedom of Information Act 0 896 Arbitration FEDERAL TAX suns. (U.S. Plaintiff or Defendant) IRS—Third Party 0 899 Administrative Procedure 0 870 Taxes 0 871 or Appeal Agency Decision 950 Constitutionality of Act/Review 0 26 USC 7609 State Statutes ImmIGRAnoN Other: 540 Mandamus & Other 550 Civil Rights 555 Prison Condition 560 Civil Detainee 0 462 Naturalization Application 0 465 Other Immigration Actions Conditions of Confinement V. ORIGIN (Place an )81 1 Original Proceeding "X" in One Box Only) CI 2 Removed from State Court CI 3 Remanded from Court CI 4 Reinstated Appellate Cite the U.S. Civil Statute under which you or Reopened are CI 5 Transferred from Another District CI 6 (specift) Multidistrict Litigation filing (Do not citejurisdictional statutes unless diversity): 28 U.S.C. 1332 and 1391(b) and (c) VI. CAUSE OF ACTION Brief description of cause: Fraud, Deceptive and Unfair Trade Practices Act, Tortious Interference with Business Relations and Conspiracy CHECK YES only if demanded in complaint: DEMAND n CHECK IF THIS IS A CLASS ACTION VII. REQUESTED IN UNDER RULE 23, F.R.Cv.P. JURY DEMAND: No CI Yes COMPLAINT: VIII. RELATED CASE(S) IF ANY DATE (See instructions): JUDGE DOCKET NUMBER SIGNATURE OF Arroy OF RECORD )115" 0A, /1/1Ait_c 110k-Cv FOR OFFICE USE ONLY RECEIPT 4 AMOUNT APPLYING IFP JUDGE I OTHER STATUTES 0 375 0 400 0 410 0 430 MAG. JUDGE of Case 8:15-cv-02435-JDW-EAJ JS 44 Reverse Document 1-1 Filed 10/15/15 Page 2 of 2 PagelD 23 (Rev. 12/12) INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44 Authority For Civil Cover Sheet The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civil complaint filed. The attorney filing a case should complete the form as follows: I.(a) (b) (c) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, giving both name and title. County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condenmation cases, the county of residence of the "defendant" is the location of the tract of land involved.) Attorneys. Enter the fmn name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting in this section "(see attachment)". Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" in one of the boxes. If there is more than one basis ofjurisdiction, precedence is given in the order shown below. United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers ofthe United States are includdd here. United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box. Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box 1 or 2 should be marked. Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity cases.) HI. Residence (citizenship) of Principal Parties. principal party. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this section for each IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is sufficient to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than one nature of suit, select the most definitive. V. Origin. Place an "X" in one of the six boxes. Original Proceedings. (1) Cases which originate in the United States district courts. Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petition for removal is granted, check this box. Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date. Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date. Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrict litigation transfers. Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When this box is checked, do not check (5) above. VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P. Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction. Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded. VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there numbers and the corresponding judge names for such cases. Date and Attorney Signature. Date and sign the civil cover sheet. are related pending cases, insert the docket Case 8:15-cv-02435-JDW-EAJ Document 1-2 Filed 10/15/15 Page 1 of 1 PagelD 24 BE4SLEY M EDIA GROUP, INC. NEWS ANNOUNCEMENT CONTACT: Soni Dimond President, Communications soni.dimond@bbgi.com Vice 239.263.5000 Beasley Media Group Announces Actions Against Todd Clem AKA, 'BUBBA THE LOVE SPONGE' Actions Follow Beasley and Nielsen Investigations into PPM Tampering Allegations NAPLES, Florida, October 5, 2015 Beasley Media Group announced today that following an investigation into Nielsen's allegations of attempted ratings distortion activity it has determined that Todd Clem (AKA, 'Bubba The Love Sponge'), who provides syndicated programming as an independent contractor to radio station WBRN 98.7 in the Tampa Bay radio market, was contacted directly by a PPM (Portable People Meter) holder and subsequently attempted to influence the listening habits of the PPM holder. Nielsen Audio confirmed that Mr. Clem's conduct has no impact on the Tampa Bay radio market ratings because the improper activity was discovered in a timely manner and Nielsen moved quickly to remove the PPM holder's results from the survey. However, due to Mr. Clem's attempt to influence the listening of a PPM Panelist, WBRN-FM (98.7 MHz), will not be included in the September 2015 ratings report. Beasley's station, Beasley Media Group President Bruce Beasley stated, "We were completely unaware of Mr. Clem's actions and moved quickly to cooperate fully with Nielsen once they brought the allegations to our attention. We thank Nielsen for their work to ensure the accuracy of forthcoming ratings. "Beasley strongly condemns the actions of Mr. Clem, who has provided syndicated programming to radio broadcasters for many years and is not a Company employee. We are taking appropriate steps to ensure that such conduct does not occur in the future. These steps include, but are not limited to, compliance training for Mr. Clem and his employees and the distribution of guidelines reiterating the importance of avoiding conduct that could cause ratings distortion, to all Beasley employees." About Beasley Media Group: Beasley Media Group, Inc. is a subsidiary of Beasley Broadcast Group, Inc., a radio broadcasting company that owns and operates 52 stations (34 FM and 18 AM) located in twelve large- and mid-size markets in the United States. Founded in 1961, Beasley Broadcast Group, Inc. (NASDAQ: BBGI) is headquartered in Naples, Florida. Approximately 7.7 million consumers listen to Beasley weekly over-the-air, online and on smartphones and tablets and millions regularly engage with the Company's personalities through digital platforms such as Facebook, Twitter, text, apps and email. For more information, please radio stations brands and visit www.bbgi.com. EXHIBIT