MINEOLA, NY; February 27, 2008 – A group of approximately 40 auto dealers entered into a settlement agreement with Newsday for an undisclosed sum which was approved by Senior Federal Judge Denis R. Hurley. The litigation was based on two claims. The plaintiffs asserted that they paid unjust advertising rates based on Newsday's inflated circulation figures.
Newsday's auditors, as well as the Audit Bureau of Circulation, determined that Newsday's average circulation had been overstated by approximately 40,000 copies on weekdays and 60,000 on Sundays. It was the dealers' claim that the fraud was much greater then that. The dealers in the suit also alleged that they were charged for advertising rates much greater than those paid by some of the larger Long Island car dealers, a violation of anti-trust laws. Leonard A. Bellavia, Esq., a nationally recognized authority in the field of automotive franchise law and senior partner of Bellavia Gentile & Associates, led the four year, heavily-contested, mass-action lawsuit. The terms of the settlement are required to be kept confidential.
Mr. Bellavia states, "Collectively these auto dealers represented Newsday's biggest advertisers. The dealers are happy that Newsday saw the wisdom of reaching a settlement instead of continuing to require its best customers to litigate against it. It also proves that when small business owners unite they can level the playing field with a corporate giant like Newsday."
