NEW YORK, May 10, 2005 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) filed a class action lawsuit on May 5, 2005 in the United States District Court, Northern District of Illinois, on behalf of purchasers of the Tribune Company ("Tribune" or the "Company") (NYSE:TRB) securities during the period from January 24, 2002 through July 15, 2004, inclusive (the "Class Period").
The complaint alleges that Tribune and certain of its officers and directors knowingly or recklessly overstated the Company's circulation numbers throughout the Class Period, and thereby caused the Company's stock price to trade at artificially inflated prices in violation of the Securities Exchange Act of 1934.
Specifically, the true facts, which were known by defendants but concealed from the investing public during the Class Period, were as follows: (a) since at least FY 2001, Defendants were inflating the circulation of Tribune's Hoy and Newsday publications; (b) as a result of said inflation, the Company's financial results during the Class Period were artificially inflated (including revenue, earnings per share ("EPS") and accounts receivables), and the Company's liabilities were understated; (c) the Company's revenue and income was grossly overstated by millions of dollars; (d) defendants had knowingly established extremely weak, if not purposeless, circulation controls which allowed for the circulation overstatements and did not require that circulation managers certify the claimed circulation; and (e) as a result, defendants' ability to continue to achieve future EPS and revenue growth would be severely threatened and would and did result in $95 million in costs, fines, refunds and investigation expenditures.
In June 2004, Tribune reported that two of its papers, Newsday and Hoy, had inflated circulation figures since 2001. This announcement set off a wave of increased scrutiny throughout the publishing industry, with advertisers keen to ensure that they were not being similarly duped. Tribune also came under increased scrutiny with the Audit Bureau of Circulations, a non-profit, private entity charged with monitoring the accuracy of circulation numbers for publications nationwide. As a result of this increasing pressure, Tribune admitted on July 15, 2004 that its reported circulation numbers for Hoy and Newsday were overstated. Tribune eventually announced it was conducting an internal investigation and that it may refund to advertisers all amounts that they had been overcharged. In response to this announcement, Tribune's stock price fell to $41 at the close of business on July 15, 2004, and has never recovered.
If you purchased Tribune securities during the Class Period, you have until July 1, 2005 to ask the Court to appoint you as lead plaintiff for the Class. Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. For more information about the Firm, visit our web site at www.pomlaw.com