The Los Angeles Times has reportedly been late in paying contractors and distributors for several months and even let go of a prominent employee as billionaire owner Patrick Soon-Shiong pushes to take the 144-year-old newspaper public.
One individual affected by these payment delays is investigative journalist Catherine Herridge. She faced challenges for months in receiving payments for her high-profile contract with the paper, finally securing her pay after a prolonged struggle. Sources indicated this situation was highlighted in the Situation Newsletter.
A spokesperson for the Times seemed to acknowledge some validity to the claims, stating that the company is currently fulfilling the “vast majority” of its payment commitments, with most payments aligning with contract terms for active accounts.
However, the spokesperson also asserted that the claims made are not entirely accurate.
She reiterated that, while there had been some issues, the paper is meeting most of its obligations and payments. Still, discussions surfaced around the recent reports of delayed payments, highlighting how contractors and vendors sometimes had to wait months or escalate the issue to higher management before receiving what they were owed.
Catherine Herridge, a former investigative reporter with CBS News and Fox News, transitioned to the Times with a prominent deal last November to lead a new investigative series. Unfortunately, her relationship with the paper soured quickly after facing payment issues, leading to a prolonged campaign before finally catching up on her payments.
This payment dilemma intersected with Herridge’s own financial strain from an unrelated legal matter regarding the protection of confidential sources.
Earlier this month, her emergency request to block a fine of $800 per day related to this legal battle was rejected by the Supreme Court. This fine stems from her refusal to disclose sources connected to a Fox News report about a Virginia school said to have ties to the Chinese military.
The reported payment delays have also frustrated several executives within the company. The senior vice president of finance, Decatur Holcomb, resigned recently after expressing concerns about the future direction of the company. However, he denied that financial issues were the reason for his departure, stating instead that he was leaving to pursue new opportunities.
Reports indicated that Soon-Shiong, who purchased the Times in 2018, is described as being very cost-conscious. For example, he once arranged for a former CBS News president to fly to Los Angeles on a coach-class ticket during recruitment, even having him stay in a guesthouse instead of a hotel.
This approach led some to question Soon-Shiong’s commitment to investing in the paper. The ongoing payment issues come at a pivotal time, as he’s looking to secure up to $500 million through an initial public offering for the Los Angeles Times.
Holcomb expressed gratitude for his time at the paper and reiterated that financial conditions were not the cause of his resignation.
The newspaper reached out for comments from Herridge, Rose, Soon-Shiong, and the Los Angeles Times regarding this situation.
