Back9Network Withdraws Lawsuit against Co-Founder and Agrees to Arbitration
Thursday, February, 12, 2015
A lawsuit between broadcaster Back9Network and its co-founder and former CEO Jamie Bosworth over the terms of his severance package has been withdrawn, and Back9Network has agreed to settle the dispute in arbitration. The broadcaster was quick to affirm, however, that by doing so it was not admitting any fault or conceding anything to Bosworth and that it still regards Bosworth as in the wrong.
The dispute stems from language in Bosworth’s severance package that prohibited him from disparaging the network publicly. The company claimed that Bosworth had “made false and disparaging statements” about Back9Network, a company that produces “golf lifestyle” programming for DirecTV. They sued the former CEO over the statements.
Bosworth filed a counter-claim alleging he was forced to agree to the severance package, and that his original employment contract stipulated that all disputes had to be handled in arbitration, not litigation, thus making the Back9 lawsuit illegal. No official ruling was made, as both sides agreed outside of court to pursue arbitration.
Bosworth is still the single largest shareholder in Back9Network. The network forced Bosworth out of his CEO role last year, and has struggled financially, missing payroll in recent months and laying off about a third of its staff. These setbacks are in spite of a 2014 announcement that its programming had won a spot on DirecTV’s lineup of programming; however the company has been accused by stockholders of paying DirecTV more than $7 million a year in exchange for the spot on their satellite roster