Entercom Settles With Spitzer For $4.25 Million
December 27, 2006 at 12:49 PM (PT)
ENTERCOM COMMUNICATIONS has reached a settlement with NEW YORK STATE Attorney General (and Gov. Elect) ELIOT SPITZER to pay $4.25 million to end the investigation of the radio company for allegedly accepting gifts in exchange for airplay.
ENTERCOM will make a $3.5 million payment to fund music education and appreciation programs and pay $750,000 in costs to the state.
A spokesperson for ENTERCOM said, "We are pleased to announce the conclusion of the Office Of The NEW YORK Attorney General’s investigation into alleged pay-for-play practices within our company. In the interests of the company, our employees and our shareholders, we have chosen to resolve this matter immediately and without extensive and costly litigation. The Court did not find any liability, nor are we admitting liability with this settlement. Rather, we are taking the opportunity to put the investigation behind us and move forward.
"ENTERCOM takes the issue of payola seriously. We will continue to comply with federal sponsor identification rules, and we will continue to enforce our policies prohibiting payola. In addition, we will be implementing new policies to enhance and bring additional clarity to our compliance efforts and help establish new industry wide best practices."
For the full press release from SPITZER's office, just click here.
To see the consent decree, just click here.