The company alleges the LA Times receives advertising "premiums" from medical advertisers to place their ads in news articles which attack their competitor.
Los Angeles-Long Beach, CA (1888PressRelease) July 20, 2011 - In a 157 page proposed amendment to a complaint filed in LA Federal Court, 1 800 GET THIN claims the LA Times operates an advertising protection scheme in violation of RICO and antitrust laws. (1 800 GET THIN v. Michael Hiltzik, etc et al., United States Federal District Court, Central District of California. Case Number CV11-0505 ODW.)
The Complaint alleges that the LA Times gets advertising "premiums" from medical advertisers to place their ads in news articles attacking their competitor, 1 800 GET THIN, the leading advertiser of LapBand weight loss surgery in Southern California. The suit claims the LA Times resorted to "operating what amounts to a protection scheme" where medical advertisers either pay or get attacked.
1 800 GET THIN's attorney Robert Silverman said, "1 800 GET THIN is an advertising company. Yet, we allege that the LA Times attacked 1 800 GET THIN for the actions of some doctors who ultimately received referrals, when those same doctors work for other clinics who advertise with the Times. Only, we allege that those clinics pay 'premiums' to the LA Times, so negative articles are not written about them. However, 1 800 GET THIN refuses to participate. As a result we believe it is singled out and attacked for the actions of those same doctors."
The proposed Complaint points out that on May 3, 2011, the LA Times published an article by Stewart Pfeifer claiming a medical clinic associated with 1 800 GET THIN was requested by the Joint Commission on Accreditation for Health Organizations (JCAHO) to improve four areas. "The article, sponsored by 1 800 GET THIN's competitors, falsely claimed the clinic was in danger of losing its accreditation," says Silverman. "Yet, the same advertisers had 11, 12, 14, and 30 JCAHO violations of their own." The suit says, "We allege that their sponsorship was designed to conceal their excessive JCAHO violations while the Times attacked their competitor [1 800 GET THIN] in return for advertising fees."
On May 26, 2011, Sharon Espudo died from bariatric surgery complications with Angeles Hospital in Tijuana. The suit claims the LA Times touts patient problems with 1 800 GET THIN's clients, but "hides" its advertisers' problems. "Not one word about Sharon Espudo appeared in the LA Times. We believe that's because Angeles Hospital advertises with the Times. It's 'protection' money, as we see it," says Silverman.
"The LA Times is part of the Tribune Company's bankruptcy filed in Delaware," says Silverman. (Bankruptcy Court Case # 08-13185 District of Delaware). "The Bankruptcy Court is considering a Reorganization Plan where Tribune Company seeks to emerge from a three year long bankruptcy," Silverman says.