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The owner of Clipper, the coupon-driven magazine that regularly arrives in thousands of area mailboxes; was hit with a $7.9 million court judgment.
A U.S. District Court of Long Island, N.Y., ordered Clipper Magazine Inc. to pay $420,000 plus punitive damages of $7.5 million for a scheme to defraud one of its advertisers. Clipper is based in Mountville, Lancaster County.
The advertiser, Los Angeles-based Merle Norman Cosmetics, had a co-op advertising program for 2,000 individually owned studios nationwide. The dispute arose over an arrangement in which Merle Norman paid part of the advertising cost and the studios paid the remainder. Several Merle Norman …