SPITZER, ENTERCOM REACH $4.25 MILLION SETTLEMENT

Entercom has settled the lawsuit brought by the New York Attorney General Eliot Spitzer to the tune of $4.25 million, the Governor-elect announced on Wednesday (12/27).

Spitzer’s suit, filed in March, alleged that employees at the 105-station chain had accepted gifts, trips and cash in exchange for spins between 1999 and this year. In settling, Entercom admitted no wrongdoing, explaining in a statement that it had resolved the issue “in the interests of the company, our employees and our shareholders.”

In the nine months since the suit was filed, Bala Cynwyd, PA-based Entercom had continued to operate spin programs, asserting the practice was within FCC guidelines. The settlement did not directly address this issue, but it’s assumed the chain will no longer engage in the practice.

According to the terms of the settlement, $3.5 million will be paid to Rockefeller Philanthropy Advisors to finance musical education and appreciation programs, while the remaining $750,000 will be paid to Spitzer’s office to cover the cost of the litigation.

Entercom is the second radio chain to settle with Spitzer. In October, Spitzer settled with CBS for $2 million.