Philly’s a laughingstock

You might think that a circulation scandal at New York newspaper Newsday (and its Spanish-language sister publication) wouldn’t affect Philadelphia much. Of course, you’d be wrong, since anytime there’s a possibility of losing money, Philadelphia will be there.

Here’s the story: Back in the summer of 2004, Newsday stated that it had overstated daily circulation to advertisers and investors for periods of several years. Then there was a fake hawker scheme later that year, &c. &c.

Now, a group of investors is suing the paper’s parent company, the Tribune Co., after the stock went from $47 to $40 during the scandal, alleging delays in divulging the problem. And the lead plaintiff in the case? If you guessed “The City of Philadelphia,” you would be absolutely correct!

The city’s Board of Pensions and Retirement (always a good place to lose money from) says it lost $310,600 on Tribune stock, according to (who else) Newsday. The Tribune Co. has reportedly put aside $95 million to settle investors’ claims.

So, basically: A circulation scandal at a paper in New York allegedly cost the city $310,600. One question: Does that put the city closer to or further from Sixth Borough status?

Philly takes lead in Tribune lawsuit [Newsday]