Maryland’s attorney general has filed a lawsuit against the Atlantic Coast Conference (“ACC”) claiming the approximately $53 million exit fee Maryland is required to pay is invalid and unenforceable.  The lawsuit, filed in Prince George’s County Circuit Court, claims the ACC’s decision to increase the exit fee in September 2012 “is lacking any legitimate economic justification” and “failed to comply with the notice and procedural requirements of the ACC Constitution is therefore null and void.”  Maryland pursues damages in accordance with theories of 1) violations of state antitrust laws; 2) breach of contract; 3) interference with prospective economic advantages; and 4) declaratory relief seeking a finding that the exit fee is unlawful.  If Maryland is successful on antitrust grounds, damages would be trebled in accordance with state laws (similar to federal laws) making the potential claim $156,799,026.00.  Additionally, Maryland’s attorney general has filed a Motion to Dismiss the lawsuit filed by the ACC in North Carolina against Maryland in November 2012.

For any questions, feel free to contact Christian Dennie at cdennie@bgsfirm.com.