NEW YORK, May 6, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Tribune Company ("TRB" or the "Company") (NYSE:TRB) (NYSE:TXA) between January 24, 2002 and July 15, 2004, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934.
The complaint alleges, that, in June 2004, Tribune reported that two of its papers, Newsday and Spanish-language publication Hoy, had inflated circulation figures since 2001. As alleged in the complaint, 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. According to the complaint, 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.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired TRB securities on any world exchange between January 24, 2002 and July 15, 2004, and sustained damages, you may, no later than July 1, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca