Federal Racketeering Suit Charges Newsday with Circulation Fraud

february 12, 2004  04:42 pm
A Long Island Press news team looks at the implications of the $100 million class-action suit filed Feb. 10 by four Queens advertisers. They accuse Newsday of using a "Fudge ABC" computer program to fool the Audit Bureau of Circulation about its figures. The daily paper allegedly gave extra loads of unordered papers to distributors on audit days and regularly sent vanloads of unsold papers to the dump. Anonymous sources "with executive-level experience at the paper confirmed to the Long Island Press that at least the essence of the allegations" are true, the team reports. Other advertisers could join the class-action suit.