Newsday to Forgo Litigants’ Ads

MELVILLE, N.Y. -- Newsday Wednesday told 50 car dealers who have sued the newspaper that it would no longer accept their advertising, effective Friday, Newsday reported.

The move came a week after the dealerships, all of which are based on Long Island, filed a federal suit alleging the daily paper violated antitrust laws by offering discounts to large businesses that advertise frequently and higher rates to other customers. The suit, which seeks $125 million in damages, also accuses Newsday of fraud and unjust enrichment stemming from its admission last month that circulation figures had been inflated since 2001.

In letters delivered to the car dealers, the paper's general manager John McKeon, said he was acting on the advice of lawyers.

The notice came as other advertisers continued to receive letters from incoming publisher Timothy P. Knight that outline a system to pay back overcharges based on the falsified circulation numbers, to lower ad rates for the next 16 months and to guarantee that circulation would meet or exceed a minimum level in 2004-05.

-- NYSSCPA.org News Staff

Posted on 7/29/04