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By most accounts, Cablevision Systems Corp. and AMC Networks Inc. were prevailing over DISH Network Corp. in the $2.5 billion VOOM HD network lawsuit and had a sympathetic judge to boot. So why would they settle for a mere $700 million in damages?
That was the question puzzling some analysts.
"That a settlement was reached is not surprising, especially after Justice Richard B. Lowe adjourned the case last week. Dish had no real hope of winning, which became more and more apparent as the case progressed," said Sanford C. Bernstein analyst Craig Moffett in an Oct. 22 research note. "What is surprising, however, is that the Dolans [Cablevision's founding family] were willing to settle for such a small sum given the overwhelming advantages they seemed to possess."
On Oct. 21, DISH agreed to a $700 million cash payment to Cablevision and AMC to end their 4-year-old lawsuit over the now-defunct HD network VOOM HD. DISH also agreed to resume carriage of AMC's cable channels -- AMC, Independent Film Channel, WE tv and Sundance Channel -- which they dropped in an affiliate fee contract dispute, and...