By: Jack Feuer
Lawsuit Seeks Nearly $1 Billion In Damages
by Jack Feuer
(Adweek) Hispanic Newspapers Network (HNN) is suing Ogilvy & Mather,
J. Walter Thompson, Young & Rubicam and WPP Group for violations of restraint-of-trade. The network is asking for damages of just under
‘They’re fed up,’ said Stephen T. Mitchell, the HNN’s lawyer. ‘They
feel they’ve been denied their fair share.’
The action alleges that the agencies are engaged in ‘discriminatory
and biased media selection practices’ on spending for government
accounts including Y&R clients U.S. Army, U.S. Census and U.S. Postal
Service, Ogilvy’s White House Anti-Drug Policy and U.S. Centers for
Disease Control and JWT’s U.S. Marines. The suit contends the
newspapers in the network have suffered injuries of at least $300
million, ‘which amount should be trebled according to law.’
The suit, filed Aug. 2 in United States District Court in New York,
contends that the Hispanic papers have been treated as a ‘separate
and unequal’ media category. In total, the litigation contends, the
government accounts spent just under $700 million on media, but less
than $1 million in Hispanic newspapers.
The Van Nuys, Calif.-based Hispanic Newspaper Network claims 14 member
newspapers around the country with an audited weekly circulation of
more than 2.2 million and total readership in excess of 8 million.
Jack Feuer is media editor for Adweek, a sister publication of E&P.
(c) Copyright 2000, Editor & Publisher