By: E&P Staff
A federal class-action lawsuit was filed against the Tribune Co. on Tuesday alleging the company misled investors when it reported false circulation numbers.
The suit, filed by Lawrence Hollie on behalf of himself and other stockholders, claims Tribune deceived investors by reporting false quarterly earnings based on inflated circulation.
Dennis FitzSimons, president and CEO of Tribune, Donald Grenesko, vice president of finance, and Jack Fuller, former president of Tribune Publishing, were named as defendants, according to a story in the Chicago Tribune.
Additionally, Margaret Hill, a trustee of Kelk Irrevocable Trust, filed a similar suit on Monday. Both suits claim Tribune violated security laws from Jan. 24, 2002 to July 15, 2004.
Last summer, Tribune announced that Newsday and Hoy had inflated circulation numbers by thousands of copies.
Tribune spokeswoman Christine Hennessy told the Chicago Tribune she could not comment on the lawsuits since the company had not been served.