Former employee sues Newsday over termination

A former Newsday employee who was fired in the wake of the company's inflated-circulation scandal has sued Newsday for wrongful termination, according to court papers.

Gerard Schultz, former manager of single copy sales on Long Island, filed suit seeking more than $8 million in damages in State Supreme Court in Riverhead in April. He claims Newsday terminated him to avoid paying disability benefits, violating the state's human rights law. A Newsday spokeswoman said, "We do not comment on pending litigation."

In 2006, Schultz filed a civil case against Newsday in federal court charging wrongful termination under several different laws, which was dismissed. He is appealing that ruling. The new suit is only under the state's human rights law.

Following an automobile accident that ultimately left him disabled, Schultz underwent two spinal surgeries in 2002 and 2004. In September 2004, while he was out on medical leave, Schultz was one of five supervisors fired in a shake-up of the circulation department.

Three of those supervisors were convicted of mail fraud and sentenced in 2008 to probation and fines. Schultz was not charged with any crime.

Newsday was investigated by federal authorities for inflating its circulation between 2000 and 2004 by as much as 100,000 copies a day. The paper and then-parent Tribune Co. were forced to pay $96.6 million to settle with advertisers.

Schultz's attorney, Joseph Giaimo of Kew Gardens, said his client reported illicit circulation activities to his superiors before the internal and federal investigations began. "The U.S. attorney never called Schultz in, he was never investigated, he cooperated," with the company's investigation, Giaimo said.