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Tribune Settles SEC Circulation Inquiry
Commission
Findings Consistent with Company’s Investigation
Issues “Cease
and Desist” Order Related to Newsday and Hoy
CHICAGO, May 30,
2006 -- Tribune
Company (NYSE:TRB) announced today that the Securities and
Exchange Commission (SEC) has concluded its inquiry of circulation
misstatements at Newsday and Hoy. The
company identified circulation reporting errors at the two
New York newspapers as part of an internal investigation
in 2004. The company assisted the SEC during the commission’s
inquiry, which also began in 2004.
"We launched an extensive internal
investigation immediately after allegations of circulation
improprieties were made regarding Newsday and Hoy,"
said Dennis FitzSimons, Tribune chairman and chief executive
officer. "We
gave the SEC and other federal, state and local authorities
our full cooperation and began communicating with our advertisers
from the outset. We’re happy the SEC’s findings
are consistent with our own investigation results and that
we have closed this matter. We are looking to the future
at Newsday and Hoy,with a focus on readership
and service to the Long Island community."
In closing its inquiry, the SEC ordered
Tribune to "cease
and desist" from violating statutory provisions related
to its record-keeping and reporting. Newsday and Hoy circulation-related
records were inaccurate due to the practices uncovered by
the company. No fines or other sanctions were levied against
the company.
The SEC acknowledged the "...remedial
acts promptly undertaken by Tribune and the cooperation that
Tribune afforded the Commission staff." The SEC
also credited Tribune for swiftly investigating the circulation
misstatements and terminating all of the personnel associated
with falsely inflating paid circulation figures at the newspapers.
"The circulation misstatements
at Newsday and Hoy were
caused by the actions of a few people who are no longer employed
at either newspaper," FitzSimons said. "We’ve
since brought in a new management team and strengthened controls
at Newsday and Hoy, and tightened circulation
policies, systems and procedures at all of our newspapers."
Following the discovery of the circulation misstatements, Newsday and Hoy offered
restitution to advertisers. The company also initiated
an internal audit of circulation practices at its 10 other
daily newspapers, which uncovered no material misstatements.
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TRIBUNE (NYSE:TRB) is
one of the country’s
top media companies, operating businesses in publishing and
broadcasting. It reaches more than 80 percent of U.S. households
and is the only media organization with newspapers, television
stations and websites in the nation’s top three markets.
In publishing, Tribune operates 11 leading daily newspapers
including the Los Angeles Times, Chicago Tribune and Newsday,
plus a wide range of targeted publications. The company’s
broadcasting group operates 26 television stations, Superstation
WGN on national cable, Chicago’s WGN-AM and the Chicago
Cubs baseball team. Popular news and information websites
complement Tribune’s print and broadcast properties
and extend the company’s nationwide audience. |
