Gruner Und Jahr Ag

Magazine publisher Gruner & Jahr USA sued an independent circulation agent, saying the agent provided faulty subscription data that could cause most of Gruner & Jahr's titles to fall short of their guarantees to advertisers. The circulation discrepancies come as Gruner & Jahr, a unit of Germany's Bertelsmann, has been working to restore trust among advertisers after questions emerged over the accuracy of its internal circulation reporting methods.

Meredith Corp., the publisher of Ladies' Home Journal, said it was buying Family Circle and three other magazines from German publisher Gruner & Jahr for $350 million. The deal also includes the magazines Child, Fitness and Parents and in effect marks an exit from the U.S. magazine market for Gruner & Jahr, which had suffered a series of setbacks in its efforts to expand here. The sale is expected to close June 30. Meredith rose $2.64, or 6%, to $50.28 on the New York Stock Exchange.

The judge in the dispute between Rosie O'Donnell and her former publisher over the folding of Rosie magazine said neither side was entitled to damages and that each should pay its own legal fees. Gruner & Jahr USA Publishing had sued the former TV talk show host for $100 million, saying she breached her contract by walking away in September 2002, over editorial differences. O'Donnell countersued for $125 million, saying the publisher had taken away her editorial control.

Rosie O'Donnell and her former publishing partner are set to face off in a New York court this week in a much-hyped breach-of-contract battle following the messy demise of the entertainer's namesake magazine. O'Donnell, known for her brashness and liberal views, was once dubbed the "Queen of Nice" by her fans. But former partner Gruner + Jahr USA Publishing says otherwise.

Rosie O'Donnell and the publisher of her now-defunct magazine accused each other in court Thursday of destroying the publication by refusing to compromise on its content. The magazine's acrimonious 2002 demise was described in Supreme Court in Manhattan, where opening arguments were heard in a lawsuit that will test the reputations of both sides. Each said the other had broken contractual agreements.

Rosie O'Donnell told the editor of her now-defunct magazine that because she was a lesbian she strongly objected to a cover photo showing the entertainer with her arms around other women, according to testimony Monday. Susan Toepfer, who became editor in chief in July 2002, said the photo was shot for Rosie magazine's September 2002 cover. Both sides agree the cover started a fight that led to the magazine's demise. The cover featured women from the TV show "The Sopranos," Toepfer said.

Rosie O'Donnell took the witness stand Thursday to defend herself against a bitter breach-of-contract lawsuit, saying she agreed to start her now-defunct namesake magazine only after being promised full creative control by the company now suing her. O'Donnell, the former television talk show host, was referring to a conversation with Daniel Brewster, chief executive of Gruner & Jahr USA, the company that published Rosie magazine from April 2001 to December 2002.

Rosie O'Donnell said Friday that her publisher had deceived her about how Rosie magazine would be run and that she was the victim of a "coup d'etat." O'Donnell, finishing her testimony in a breach-of-contract case in state Supreme Court in Manhattan, said she had entered the joint venture with Gruner & Jahr USA believing she controlled the editorial content and staff of the magazine. By the end of the summer of 2002, she said, she believed that was no longer true.

The chief financial officer of Gruner & Jahr USA, publisher of Rosie O'Donnell's magazine, admitted Monday that his company reported false circulation figures to hide the magazine's losses. Lawrence Diamond said executives at Gruner & Jahr decided to "manage the financials" of the magazine, Rosie, so they could keep publishing. If the magazine lost more than $4.2 million in a fiscal year, O'Donnell would have been permitted to end her arrangement with Gruner & Jahr.

The bitter lawsuit pitting Rosie O'Donnell against her former publisher -- a battle that attracted more attention than the short-lived Rosie magazine ever did -- fizzled out Wednesday when the judge said neither side deserved damages because it's doubtful the magazine would have made any money.