In 1988, KASN (channel 38) negotiated a merger with KLRT-TV that would have resulted in KASN's Fox network affiliation and syndicated programming to KLRT; under the deal, KASN would have become an affiliate of the Home Shopping Network. KLRT abruptly pulled out of the merger deal with KASN, notifying the station by fax of its nullification of the deal on its part. However, in April 1990, Fox chose to move its network programming to the higher-rated KLRT, despite the fact that the deal made it so that KASN would continue as a Fox station if the merger fell through. KASN owner MMC Television filed a lawsuit against KLRT owners LRCA/Scollard due to the failed merger, alleging civil conspiracy, misappropriation of trade secrets, interfering with business relationships, breach of contract and fraud.