Fifty Long Island, N.Y., dealers plan to seek a court order this week to force Newsday, the dominant newspaper in their market, to accept their advertising.
The paper rejected ads last week from dealers who are suing its publishing company. The dealers allege that Newsday fraudulently inflated circulation figures and overcharged for ads. Advertising rates generally are based on the number of readers a publication has.
Newsday reported that its managers rejected the ads because they did not want to expose the company to additional legal liability. A lawyer for the dealers was quoted as saying he considered the ban a tactic to get the lawsuit dropped.
New York's Daily News, a competitor, reported that Newsday could lose as much as $500,000 each weekend that it refuses the dealers' ads.