MCLEAN, Va. - Gannett Co., Inc. (NYSE: GCI), a leading media and marketing solutions company, has been ordered to pay $25 million in damages following a defamation lawsuit. The case, titled Scott O. Sapulpa v. Gannett Co., Inc., concluded with a jury in the District Court in the State of Oklahoma finding Gannett liable for defamation, actual malice, and intentional infliction of emotional distress.
The plaintiff was awarded $5 million in actual damages and an additional $20 million in punitive damages. The media company, which owns The Oklahoman among other media assets, expressed its disappointment with the verdict. Gannett stated that during the trial, no credible evidence was presented that indicated The Oklahoman knowingly published false information or intended to harm the plaintiff.
Gannett has announced its intention to seek an appellate review, questioning the trial's administration and processes. Despite the significant sum, the company reassures that the awarded damages would be covered by insurance and they do not anticipate a material impact on their financial position or liquidity.
This news comes as Gannett continues to focus on its digital transformation and subscription-led growth. The company is known for its Pulitzer Prize-winning content and a portfolio that includes USA TODAY, local media organizations across 43 states, Newsquest in the United Kingdom, digital marketing services under LocaliQ, and a substantial events business via USA TODAY NETWORK Ventures.
The information is based on a press release statement from Gannett Co., Inc.
InvestingPro Insights
As Gannett Co., Inc. (NYSE: GCI) navigates the aftermath of the costly defamation lawsuit, the company's financial health remains a critical factor for investors. According to InvestingPro data, Gannett's market capitalization stands at a modest $315.41 million. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is 10.77, with an adjusted P/E ratio for the last twelve months as of Q3 2023 dropping to 7.67. This indicates a potentially more attractive valuation in terms of earnings.
InvestingPro Tips suggest that Gannett's PEG ratio of 0.1 during the same period reflects a potentially undervalued stock if one considers the company's earnings growth in the valuation. Additionally, the Price / Book ratio of 0.96 suggests that the stock may be reasonably valued with respect to the company's net asset value.
While the company's revenue has seen a decline of -10.4% over the last twelve months as of Q3 2023, it's important to note that Gannett has a robust gross profit margin of 36.6%, which could signal efficient management of production and service costs. The company's operating income margin stands at 4.39%, reflecting the profitability of its core business operations.
Investors interested in a deeper dive into Gannett's financials and strategic outlook may find additional insights with an InvestingPro+ subscription. For those looking to subscribe, use coupon code SFY24 for an additional 10% off a 2-year subscription, or SFY241 for an additional 10% off a 1-year subscription. With more tips available on InvestingPro, investors can make more informed decisions about their portfolio's composition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.