Sinclair Broadcasting Group Poised to Break Election Laws

http://www.nytimes.com/2004/10/19/politics/campaign/19vet.html

A veteran shown in a new film critical of Senator John Kerry's anti-Vietnam War activism is suing the producer of the movie, saying it libels him by deceptively editing his statements.

The suit, filed yesterday in Philadelphia, involves the film "Stolen Honor: Wounds That Never Heal," which accuses Mr. Kerry, the Democratic nominee for president, and the antiwar group he joined of making up the accounts of wartime atrocities that Mr. Kerry later talked about in his 1971 Senate testimony. The Sinclair Broadcast Group has asked its 62 television stations to show the movie this week.

The veteran who brought the suit, Kenneth J. Campbell, is shown saying he was not at one of the massacres later discussed, and asking another veteran whether he could produce accounts of the massacre.

A lawyer for Mr. Campbell, a decorated marine who is now a professor at the University of Delaware, said the film was edited to take out footage in which Mr. Campbell made clear that only soldiers who witnessed the atrocities firsthand would be allowed to testify at the hearings, and footage in which he recounted his military superiors ordering him to kill innocent civilians.

"It edits little clips to make it look like they're just making up instances," said the lawyer, David Kairys, who said Mr. Campbell was not connected with the Kerry campaign.

The film's producer, Carlton A. Sherwood, said in a statement that the complaint was "completely baseless." He said Mr. Campbell was not identified by name in the film.

Lawyers for Mr. Campbell sent letters to Sinclair and to a theater near Philadelphia that was planning to show the film on Tuesday, warning them that the film was defamatory. The theater canceled the showing, citing "pending litigation."

Meanwhile, Jonathan Lieberman, the Washington bureau chief for Sinclair's news division, told CNN last night that he had been fired for publicly objecting to the decision to present the film as news, not commentary, and to run it so close to the election.

http://www.usatoday.com/printedition/news/20041020/a_sinclair20.art.htm

A media company that had planned to broadcast much of a film that attacks Sen. John Kerry on its 62 TV stations significantly changed its plans Tuesday amid protests from some of its shareholders and Kerry's supporters.

The company ?- Sinclair Broadcast Group of Hunt Valley, Md. ?- didn't immediately satisfy its most vocal critics. But the change seems to make it less likely that the program will be mostly devoted to the anti-Kerry film.

Sinclair's management had told managers of its stations three weeks ago to plan to broadcast a program devoted almost entirely to the controversial film Stolen Honor, Wounds that Never Heal. The film accuses Sen. John Kerry of betraying his fellow Vietnam War veterans, particularly prisoners of war, by protesting that war after he returned home in 1969.

On Tuesday, the Sinclair plan was partly responsible for threats of legal action from some shareholders. They're upset about a sharp drop in the company's stock, which they say was partially due to the controversy over Stolen Honor. Sinclair's stock closed Tuesday at $6.26. It has fallen more than 50% this year.

But late Tuesday afternoon, Sinclair announced that this Friday most of its stations will air "a special one-hour news program entitled A POW Story: Politics, Pressure and the Media." It said the program "will focus in part on the use of documentaries and other media to influence voting." Sinclair said portions of Stolen Honor would be shown, but only as part of "the broader discussion" about the media.

Sinclair's original plan brought protests from Kerry's supporters. The Kerry campaign complained to the Federal Election Commission, saying the program would be an illegal "in-kind" contribution to the Bush-Cheney campaign. It pointed out that several of Sinclair's top executives are big contributors to Republican campaigns. The FEC is not expected to take up the complaint before Election Day.

On Monday, the controversy cost Sinclair's Washington bureau chief his job. Jon Leiberman, 29, was fired for telling The Sun of Baltimore that he had refused to be part of the program. Leiberman told The Sun he felt Sinclair's decision to air much of Stolen Honor was evidence of "biased political propaganda, with clear intentions to sway this election."

The Kerry campaign isn't satisfied with Sinclair's new plan. "Sinclair Broadcasting has been all over the map on this issue. One thing that's certain is that they have a partisan agenda. It remains to be seen whether they decide to put their own narrow interest ahead of the public's trust," said Chad Clanton, a campaign spokesman.

In its statement, the company said that "at no time did Sinclair ever publicly announce that it intended" to air all or most of the film. But Mark Hyman, a Sinclair vice president who also does conservative commentaries that air on the company's stations, had told The Washington Post, in a story published Oct. 11, that Stolen Honor "is a powerful story." Hyman, who was defending Sinclair against critics' charges of pro-Bush bias, told the Post "it would be irresponsible" to ignore the charges leveled at Kerry in the film.

And the film's maker, independent journalist and security consultant Carlton Sherwood, had posted a poll on his Web site ?- www.stolenhonor.com ?- asking visitors for their opinion of the company's "intent to air Stolen Honor on all 62 of their television stations during prime time."

Sherwood shared a Pulitzer Prize in 1980 when he was a reporter with Gannett News Service, which like USA TODAY is owned by Gannett Co. More recently, he has worked for a security company that does contract work for the Department of Homeland Security.

Sinclair executives were warned by the company's journalists Sunday that the program would have to be about more than Stolen Honor if the company wanted to protect its credibility. Reporters and editors at Sinclair's headquarters are now in charge of producing the program, which will air on most Sinclair stations at 7 or 8 p.m. (local times) Friday.

Leiberman said Tuesday that he is convinced Sinclair also altered its plans because of outside pressure. Sinclair executives did not respond to interview requests Tuesday.

The pressures grew Tuesday:

•Attorney William Lerach, one of the nation's top lawyers on lawsuits brought by shareholders against corporations, said he was notifying Sinclair that he represents shareholders who might sue. The shareholders believe the Stolen Honor controversy has hurt their investments and also suspect some executives may be guilty of "insider trading" because they sold thousands of shares late last year and early this year, when the stock was at its peak.

•Media Matters for America, a watchdog group, said it was underwriting a potential lawsuit by shareholders who think the controversy has hurt the company.

•Deborah Rappaport, who along with her husband has donated millions of dollars to liberal causes in recent years, announced she was offering Sinclair Broadcast Group more than $1 million to broadcast Going Upriver, a film more sympathetic to Kerry's Vietnam War experience.

http://mediamatters.org/items/200410200001

Sinclair Drops Plan to Air Full Anti-Kerry Film

Move Sparked by Threat of Shareholder Lawsuit Underwritten by Media Matters for America

(Washington, DC, October 19, 2004) -- At approximately 3:45 p.m. (EDT) on October 19, a representative of Sinclair Broadcast Group Inc. called Mr. Jim Glickenhaus, a general partner in the Wall Street investment firm Glickenhaus & Co., to state that a response was forthcoming to a demand letter submitted earlier in the day by Glickenhaus, whose firm holds 6,100 shares of Sinclair stock. The demand letter, underwritten by Media Matters for America (MMFA), threatened legal action if Sinclair aired the anti-Kerry documentary Stolen Honor: Wounds That Never Heal on all 62 of its stations reaching up to 25 percent of U.S. TV households.

At approximately 4 p.m., Sinclair representatives faxed Glickenhaus a statement declaring that Sinclair Broadcast Group will not be airing Stolen Honor in its entirety, but will instead air a "news special" to be "produced with the highest journalistic standards and integrity."

Both Glickenhaus and MMFA agree that Sinclair's decision satisfies the basic request in Glickenhaus's demand letter. In his letter, Glickenhaus demanded that Sinclair either not broadcast Stolen Honor or "provide those with views opposed to the allegations in the film an equal opportunity to respond."

"Sinclair has finally acknowledged that its decision to air Stolen Honor was untenable," explained MMFA President and CEO David Brock. "Backing away from its original decision reflects the power of both the marketplace, which has severely punished Sinclair for its actions; the grassroots actions that have put pressure on Sinclair for the past two weeks; and the serious threat of litigation on the part of shareholders that have been grievously damaged by the precipitous drop in Sinclair stock since the company first announced its intentions."

Glickenhaus immediately faxed an acknowledgment to Sinclair CEO David D. Smith in which he stated:

"We trust from the press release that Sinclair will ensure that the program is fair, balanced, and provides a meaningful opportunity for participation by those with opposing points of view, regardless of whether they may be part of any particular campaign. We will be watching the events unfold over the next three days to confirm that Sinclair stays on the course it described in its response to me and presents a fair and impartial program."

Sinclair's stock has fallen 17 percent, costing shareholders $105 million, since Sinclair's decision to air Stolen Honor in its entirety first became public.

Although Sinclair altered its programming content, both Glickenhaus and MMFA fully intend to closely monitor Sinclair's new program, titled A POW Story: Politics, Pressure and the Media. Should the program fall outside the boundaries of fairness and impartiality outlined in the demand letter, legal action may resume. The legal work for this successful action was undertaken by Dan Johnson and Tom Wardell, of the Washington DC-based firm of McKenna Long & Aldridge LLP.

Posted to the web on Tuesday October 19, 2004 at 10:28 PM EST

But late Tuesday afternoon, Sinclair announced that this Friday most of its stations will air "a special one-hour news program entitled A POW Story: Politics, Pressure and the Media." It said the program "will focus in part on the use of documentaries and other media to influence voting." Sinclair said portions of Stolen Honor would be shown, but only as part of "the broader discussion" about the media.