Portland Phoenix sues new competitor
The Portland Phoenix alternative weekly newspaper is suing Dig Portland less than two weeks after the competing alt-weekly launched its first issue.
Portland News Club, the new owners of the Portland Phoenix, filed the lawsuit in U.S. District Court in Portland on Nov. 28.
The Bangor Daily News reported that Portland News Club is alleging that two of Dig Portland's employees who previously worked for the Portland Phoenix violated contractual obligations when they joined Dig Portland, brought confidential business information with them and recruited other former employees, among other things.
“In fact, every single one of the 35 advertisers in the first Portland Dig issue is a current [or] former client and customer of the Portland Phoenix,” according to the lawsuit. “Thirteen of these 35 advertisers diverted all of their business to Dig Portland, and do not advertise in the Portland Phoenix.”
As a result, Portland News Club is asking the court to halt the continuation of Dig Portland in its current form and also award financial damages.
Jeff Lawrence, co-publisher of Dig Portland, told the BDN that the claims are "frivolous" and that his company is mulling a possible counter-suit for that reason. He said all of the former Portland Phoenix employees were hired legally.
Lawrence added that obtaining its list of advertisers was just a matter of flipping through its pages. Other information like the alt-weekly's distribution list was obtained by working with the same distribution company, Lawrence said.
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