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DirecTV has filed a lawsuit against EchoStar


DirecTV has filed a lawsuit against EchoStar concerning advertising and promotional materials the satellite TV competitor is circulating in rural areas where Pegasus has sold DirecTV.

The litigation has ties to the ongoing legal skirmish between DirecTV and Pegasus, in which the satellite TV giant is directly marketing its service in areas that were once the domain of Pegasus, the company that had been exclusively selling DirecTV in its rural territories. EchoStar also has been in the same rural areas promoting its DISH Network service and recruiting Pegasus customers.

In its lawsuit, DirecTV said EchoStar has created false and misleading advertising for retailers to distribute in areas serviced exclusively by Pegasus. The advertising, DirecTV said, suggests Pegasus customers will lose their DirecTV programming, and can keep satellite TV service by switching to DISH Network.

"EchoStar has distributed these untrue and advertisements to DISH Network retailers and placed them on EchoStar's retailer Web site for retailers to use, and retailers are in fact running the advertisements in Pegasus territories," DirecTV said in its lawsuit.

EchoStar said it will fight the litigation. "We believe our advertising is factually accurate," the company said in a statement. "It informs Pegasus customers of the risk that they may lose service, and the great alternative available to them by switching to DISH Network."
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