Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

BanxCorp Sues Dow Jones, Times Over Rate Sites

June 3 (Bloomberg) -- BanxCorp, operator of the BanxQuote website, sued media companies including News Corp.’s Dow Jones & Co. and New York Times Co., accusing them of forming a cartel to sell information on bank interest rates online.

BanxCorp yesterday added the companies, as well as AOL Inc., to a lawsuit filed on May 14 against Tree.com Inc.’s LendingTree LLC in federal court in Newark, New Jersey.

The companies conspired with Bankrate Inc. to “gain an unfair advantage over the plaintiff” by fixing the prices that banks pay to have rates listed on websites, according to the complaint. BanxCorp, based in Scarsdale, New York, estimates damages at more than $500 million.

“The defendants through the cartel have made it virtually impossible for competing bank rate websites to remain in business or become newly established,” lawyers for BanxCorp said in the lawsuit.

Financial institutions pay to list their interest rates on websites run by BanxCorp and Bankrate, then consumers use the sites to find the most competitive rates for financial products such as certificates of deposit and mortgages. The media companies republish the data.

CNBC, CNN

The other defendants named are General Electric Co.’s CNBC, Time Warner Inc.’s Cable News Network, Microsoft Corp.’s and GE’s MSNBC Interactive News LLC, News Corp.’s Fox News Network and Move Inc.

Jack Horner, a News Corp. spokesman; Sara Anissipour, an outside spokeswoman for Microsoft; and Anne Eisele of GE, Alysia Lew of AOL and Julie Reynolds of Move.com said their companies had no comment.

“We haven’t been served and haven’t seen the complaint,” Diane McNulty, a New York Times spokeswoman, said in an e-mail. Mona Marimow of LendingTree and Christa Robinson of CNN didn’t return messages for comment.

BanxCorp also sued Bankrate in federal court in New Jersey. That suit is pending, BanxCorp Chief Executive Officer Norbert Mehl said in a telephone interview.

The case is BanxCorp v. LendingTree LLC, 10-02467, U.S. District Court, District of New Jersey (Newark).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.