'Newsday,' 'Hoy' Ask Court to Dismiss Lawsuit

By: E&P Staff Newsday of Melville, N.Y., and New York's Hoy filed a 42-page motion yesterday asking a judge to dismiss a case brought by four small advertisers over inflated circulation numbers.

The newspapers said in federal court in Central Islip, N.Y., that there was scant evidence that federal laws prohibiting unfair competition and racketeering were violated.

According to a report in today's Newsday, the papers were responding to final amendments to the suit, which alleges the inflated circulation numbers created unfair competition for advertisers and resulted in higher consumer prices.

The advertisers' lawyer, Joseph O. Giaimo, expressed confidence in his arguments, saying, "I do not believe this case will be dismissed." But he added that he remains interested in trying to settle the case before trial. "I've extended my hand but I've had no response," he said in Newsday.

"Newsday has persuaded more than 20,000 of the 40,000 advertisers harmed by the paper's inflated circulation numbers to accept restitution offers and waive their right to sue," the paper affirmed. "Among those accepting settlements are more than 75 percent of the 350 largest advertisers, including the 10 biggest."


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