Newsday Circulation Scandal: Nine Plead Guilty

30 May 2006

The Chicago-based Tribune Company, owner of Newsday and Spanish-language title Hoy, has set aside $90 million (€70.65m; £48.48m) to reimburse advertisers in those publications who were overcharged on the basis of false circulation figures.

Meantime, nine people have pleaded guilty to federal conspiracy charges. Four were managers who worked in sales, circulation, distribution and home delivery. In addition, two men working for companies that distributed the publications also pleaded guilty. All face between four to twenty years in prison.

In addition, three others who have already entered guilty pleas, were higher up the corporate ladder. They are Louis Sito, Tribune's vp for Hispanic media; Robert Brennan, former Newsday vice president for circulation; and Ed Smith, an independent consultant for Newsday circulation.

In a statement issued Monday, a Newsday spokeswoman proclaimed: "We have cooperated with the authorities in every way possible from the outset of their investigation and will continue to do so."

Data sourced from Wall Street Journal Online; additional content by WARC staff