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Home My WebLink AboutNewsday Er J~,ABETH A. NEVILLE TOWN CLERK KEGISTRAR OF V1TAL STATISTICS ~L~GI~ OFFICEB RECOItDS i~x~AGElV~NT OFFICER FREEDOIv[ OF INFOP, zNIATIO!X~ OFFICER Town Hall, 53095 Main Road P.O. Box 1179 Southold, New York 11971 Fax (631) 765-6145 Telephone (63I) 765-1800 southoldtown.nor t kfork.net OFFICE OF THE TOWN CLERK TOWN OF SOUTHOLD October 8, 2004 Attention: Advertising Processing Department Newsday 235 Pinclawn Road Melville, New York 11747-9878 Dear Sirs: Enclosed is the agreement concerning advertising adjustment on class action litigation signed by Southold Town Supervisor Joshua Y. Horton. Please send us a check for the mount together with a fully executed copy of this agreement_ Thank you. Very truly yours, Elizabeth A. Neville Southold Town Clerk cc: Town Comptroller Town Attorney AGREEMENT CONCERNING ADYERTISING ADJUSTMENT, NOTICE OF PENDING CLASS ACTION LITIGAT~ON~ AND RELEASE OF CLAIMS This agreement is made and entered into as of this 5th day of October , 2004, by and betw~u Newsday, Inc. ("Newsday") and TOWN OF $OUTHOLD ("Advertiser"). TOWN OF SOUTHOLD 082624301 PO BOX 1179 1204 SOUTHOLD NY 11971-0959 Newsday agrees: 1. To apply an unconditional credit to your account of $54.00, equaling 7.53% of your total advertising spending during the period January 1, 2002 to March 31, 2004. If you prefer a check payment, mark the box below. 2. In addition, an unconditional credit equal to 7.53% of your total Newsday in-paper, net advertising spending during the period April 1, 2004 to September 30, 2004 will appear on your October statement. [] Payment by ~hack. A. Pending C]ass Action Litigation, Advertiser acknowledges that it has read tha Notice of Pending Class Action Litigation on tha r~verse side of this document. Should you choose not to enter into this Agreamcnt, such failure in and of ttself will have no effect on your placement of advertising with Newsday. In tha event that you choose to accept the Advertising adjustment and sign this Agreement, you will not b~ able to participate, or recover damages, in the Class Action Lawsuit with respect to past advertising in Newsday. By entering into this Agr~meut, you are waiving and foregoing your rights to participate in the Class Action Lawsuit. You may wish to consult an attorney before entering into this Agreement. B. Release. In consideration of tt~ above Advertisiug adjustment, Advertiser, its present or former affiliates, subsidiaries, corporate parents, directors, officers, shareholders, employees, sq~ccessors and assigns thareof (collectively,, "Releaser"), hereby releases and forever discharges Newsday, its predecessors, present or former divisions, affiliates, subsidiaries, corporate parents, directors, officers, shareholdezs, employees, agents, successors and assigns thereof (tho 'q',lewsday Roleasees") from any and all cJ,im~, d~mands, actions, causes of acllon~ obligations, costs, damages, hisses, expenses, sthts or liabilihes of any nature whatsoever, wh~th~r known or unknown~ which Releaser ever had or may presently have against tls Newsday Releaseas prior to th~ date of this Agreement which are based upon~ arise out of or rare iR any way related to the payment of fees for adverb_sing in Newsday, including but not limited to clanns which are, or might have been assorted, m the pending Class Action Lawsuit. C. Procedure/Miscellaneous. This document must be signed and mailed hack to Newsday on or before October 15, 2004. Advertiser adjustments may not be assigned or transferred. The terms and conditions stated in this document may not be disclused to any third party, except if such disclosure is required by law. Allow soven (7) business days for this document to bo processod. Advertiser7 Nam~-/]oshum Y. Hortom Title: Supervisor, Town of Southold, NEWSDAY, INC. By: Title: [] Check here if you would like to receive a fully executed copy of this legal document. NOTICE OF PENDING CLASS ACTION LITIGATION A lawsuit has been brought against Newsday, Inc., certain affiliated corporatiogs and various indi~,qduals in tho United States District Court for the Eastern District of New York on behalf of, among others, ali persons and entities who "placed and paid for advertxsements tn Newsday and Hey" during the "period prior to or from mid-1995 to the present." Crab House of Douglaston, et. al_ v. Newsday, Inc_ et. al, Case No. 04C558 (LDW) (WDW) (The "Class Action Lawsuit"). The Amended Complamt alleges that tha defendants fraudulently increased tho reported cixculation volume of Newsday and Hey, and that advertisers paid inflated advertising fees. It seeks actual, treble and putative damages on behalf of all persons and entities who placed and paid for advertisements in Newsday and Hey. As an individual or entity who has placed ads in Newsday and Hey smee t995, you may be eligible to participate in the Class Action Lawsuit. If you have questions or want further information concerning the Class Action Lawsuit, you should contact the plaintiffs' attorney, Joseph O. Giaimo of Giaimo & Vreeburg, LLP (718) 261-6200. Tews datj RECEIVED 235 Pinelawn Road~ Melville NY 11747 8EP 1 7 2.004 Septetnber 13, 2004 %uthol,I Town Cle~[ Dear lkdvertiser, I'm writing to provide you an update on om- progress in the investigation of our circulation misstate- ments and ex-plain our resolution we m'e presenting to you. Since the imfial mmotmcement in Jm~e, auditors from the Audit Bm'eau of Ch'culations (,kBC) and Tribune have conducted thorough investi- gations. Based on information gathered thus far, Nexx~day has announced the following rex4sions to its ctrcL~tion figures: · For the 12-month period ending Sept. 30, 2003. daily circulation is exn2ected to be bet~een 480,000 an~d 490,000 and Smxda.v circulation to be between 570,000 and 580,000. · For the 6-tnonth period ending Ma~ch $1, 2004, daily circulation is expected to be betxveen 480,000 and 490,000 and Sunday ch'culation to be between 540,000 and 550,000. · For the 12-month period ending Sept. 80, 2004. daft3 and Stmday circulation is expected, due to seasonal fluctuations, to be somewhat below rile Mm'ch 2004 range. .U3C has infmTned us that it expects to release its audited circulation fig~tres for the 12-month period endh~g Sept. 30, 2003 by mid-October, h~ addition, ABC-audited circulation figures for the 6-month period enditig March gL 2004 xq]l be mmotmced in mid-November. - ~kBG-is-stflt-in the~process of rex~exxqx~o ~ts audit of Newsdavs mpot~ed-circulatim~ figures for the- 12-month petiod ending Sept. $0, 2002. Our oxxa~ investigation has led us to conclude that it is appro- priate to h~clude this period of time ha our calculation of reimbursement to you. Like you, ute are eager to put this circtflation problem bel~d us. Newsdav's relationships with its advertisers are o['the ntmost hnportance to us. Accordin~y, we are taking the follox~Sng steps to resoh'e this issue: 1. The accompan_sq2~g advertising adjustmeut a~eement proxScles the resolution based on 3-our adx erkising spending xxith Newsday- fi'om January 1, 2002, ffa'ough March 31, 2004, taldng h~to account the date. volume and geogqcaphy of ntsstated circulation for this period. You xdll have the option of receix~ng a check or an unconditional crecht on yottr accotmt ~4th Newsday. Please rexdew the advertiskng a4iustment a~eement (especially the procedm'es to [uitiate this process) and the notice on the reverse side. 2. The advetq:ising a~iustment a~-eentent also sets out a percentage that xx511 be applied to yom' Newsday in-paper net advertising fi-mn April 1, 2004 tln-ough September 30, 2004 tv establish the resolution for tiffs period of trine. Tlffs amotmt xx511 appear on yom- October statement as an tmconditional credit. ;3. h~ earb' October; 5'our Newsday sales rep xx4[1 present a new rate card structure effective October 1 that is reflective of the new eh-ct~lation levels stated above. Tbis rate card structure xxill rentain in place through Dee. 81, :2005. Throughout the process, we haw been focused on malting sttre we &) not sac_~ce accuracy for speed in our deeision-malo~g, fl~ nc' July 27th letter to advertisers, I htdicated that based on a lack of ABC audited cSrculation numbers, we felt it was appropriate to develop new rate cards wtffch would be based, in pratt, on a rate base gxtarantee of mmtud average ch'culation. Since then. new information and m~ expe&ted ~kBC attclithig process have allowed us to issue a new rate card shxtcture based, hi part, on audited circtdation figures, negating the need for a rate base guarantee. Newsday is detemfined to ensm'e integrib' at eveU' level of its business and xxill have '2ero tolerance" for acts that could x4olate the trust of ottr advertisers, readem and others. As you lmom we have substantial d~anges to our circtdation depatiment h~ light of our internal investigation. Circulation department management that engaged in inappropriate behmSor has been temtinated~ hq a&lip._'on, Newsday's C, eneral Mmmger, CFO. Vice President of Cirettlation and I are required to eerie' to Tdbtme Co. on a quarterly basis as to the acettraey of om- circulation m~d that ABC g'uidelhxes and Tribtme policies have been tbllowed. Moreover; earlier tiffs month we distributed to ex~U' employee a Code of Business Conduct. which represents a colmnitment from every e~nployee to make the right eth- ical decisions in can35ng out their jobs. Nex~sday is also ftdly compb4ng xx/th the )d3C actions am~om~ced on Jtlly 12. Milch h~dttde a proxSsion Ibr more frequent audits of Nexx'sday's circulation numbers (for the next_ t~vo yearn, om~ records ',:ill be audited ever3 slx months, rather than atmtk'x[ly}, and a plan of action xxe x%ll submit to the 3,13C bom-d describing the actions we are takdng to eon'eot fl~e probletns we have detected. ff you have m\l~ questions about this resolution, please COl~tact 5'our sales rep or a customer set-rice rep at the Newsday Resolution IAne at 1888) 639-7329. We thank xm~ for 5'our patience and understanding. 1Ve look fom'ard to contiw~g to be a kev adver- rising partner to you m~d helpfl~g _x ou g~-ow your business_ Sincerely, Timothy P. Kin~t Publisher; President 8~ CEO