Diamond Sports sued the Phoenix Suns, Mercury, and their two media partners on Wednesday in an effort to block the formation of a new media outlet.
The Suns announced last week that they would partner with Gray Television and Kiswe Mobile to create a new direct-to-consumer streaming service, in addition to broadcasting games on free over-the-air TV.
Diamond, which released a statement last week following the Suns’ announcement, is looking for the court to void the agreement and award damages.
Diamond is currently in Chapter 11 proceedings.
The Suns could not immediately be reached for comment.