By: E&P Staff A federal judge ruled that Newsday of Melville, N.Y., could negotiate with advertisers, denying a motion which aimed to block the paper from offering rebates to advertisers charged with rates based on inflated circulation figures.
The lawyer representing 10 advertisers, Joseph Giaimo, argued that the plan by that paper, and Spanish-language Hoy, to offer advertisers reimbursements would prevent other businesses from joining the lawsuit, currently seeking class-action status.
After the arguments, U.S. Magistrate Judge William Wall said, "In the absence of a showing of threatened misconduct, I'm not going to monitor any communication between the defendant and the putative class."
Giaimo is considering an appeal and plans to meet with Newsday executives after they conclude an internal audit, expected this month. Newsday and fellow Tribune Co. paper Hoy have admitted to significant circulation misstatements.
Newsday responded to the latest court action by reaffirming its pledge to deal with the circulation scandal promptly. A statement issued by the paper read, "This legal maneuver would have impeded that process and clearly was not in the best interests of our advertisers."
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