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Thursday, May 2, 2024

New York Times' fight unseals part of LIV Golf lawsuit record

Federal Court
Ward

SAN JOSE, Calif. (Legal Newsline) - The New York Times will only get one of its wishes in its quest for sealed materials in the LIV Golf vs. PGA Tour lawsuit.

California federal judge Beth Labson Freeman on Oct. 5 kept many currently sealed exhibits private, finding they contained confidential information regarding Liv's sealed shareholders agreement.

However, an exhibit from a PGA Tour motion will be made available.

"Although much of the information contain confidential information regarding LIV Golf's recruitment of players (including the identities of the players, the number of offers, the structure of the offers and th terms of the offers, including specific amounts), LIV Golf has not provided compelling reasons to seal material such as email fields, footers and introductory and other non-confidential language in the body of the emails," Freeman wrote.

The case presents important issues in which the public has a legitimate interest, lawyers for the newspaper wrote in a June 16 motion to intervene in the case. Golfers who took deals at LIV like Phil Mickelson and Bryson DeChambeau sued the PGA Tour in California federal court, alleging the PGA Tour used its power to squash competition from LIV.

In turn, the PGA Tour said LIV's lack of success came from the fact it was funded by Saudi Arabia, given criticism of corruption and human rights abuses in the country.

In the end, the two put their differences aside to merge but that doesn't mean what was disclosed to the court under seal should stay secret forever, the New York Times said.

The Times wanted documents sealed in four court orders between Feb. 9 and April 10. Freeman rejected its request for a sealed motion to dismiss by the Public Investment Fund of the Kingdom of Saudi Arabia.

"(A)t issue are claims that a foreign state, using the immense power and wealth of a sovereign investment fund, may have tortiously interfered with a United States enterprise - and, apparently, arguments by those counterclaim defendants that they are not subject to the full jurisdiction of U.S. Courts," the Times wrote.

"As the court previously has held, who controls LIV goes to the heart of the merits of the counterclaim thus rendering the public interest in access to the information especially great."

Relevant records pertained to whether the Public Investment Fund of Saudi Arabia and its governor, Yasir Al-Rumayyan, misled the California court.

"Only adding to these interests are President Trump and members of his former administration's close business ties to LIV Golf and PIF and the political and diplomatic impact of Saudi Arabia's involvement," the motion said.

"These are precisely the kinds of public concerns - allegations of harm to the public, affecting an international sport, implicating a sovereign state and the court's jurisdiction - that weigh heavily in favor of disclosure."

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