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Updated April 7, 2000, 10:11 a.m. ET

Jury clears Consumer Reports magazine of liability in Isuzu case

LOS ANGELES (AP) — A federal jury has cleared the publisher of Consumer Reports magazine of liability for reporting that 1995-96 Isuzu Troopers are dangerous.

The jury did rule Thursday that eight of the 17 statements Isuzu questioned were false, and that in one of those inaccurate statements the magazine demonstrated "reckless disregard" for the truth.

But the jury determined Consumer Reports did not believe, in the case of seven of those statements, that they were untrue before publishing them. It decided against awarding monetary damages to Isuzu, whose attorney told jurors the company suffered $244 million in lost sales and damage to its reputation after the issue was raised in 1996.

Jury foreman Don Sylvia said eight of the panel's 10 jurors wanted to award Isuzu as much as $25 million, the Los Angeles Times reported today.

"We didn't do it because we couldn't find clear and convincing evidence that Consumers Union intentionally set out to trash the Trooper," he said.

Consumer Reports' publisher, Consumers Union, called the ruling a victory, saying the jury backed up its claims that the vehicle is basically unsafe and prone to tip over.

"The verdict generally acknowledges the honesty of our testing and reporting staff and our belief in our procedures," Consumers Union president Rhoda Karpatkin said in a statement.

Isuzu said the ruling supported its claim that Consumer Reports rigged testing on the Trooper, falsified documents and used "driving stunts" to make it appear the vehicle was vulnerable to a rollover.

"The jury's finding on falsity today provides clear vindication for the Trooper, which has an excellent safety record in the real world," the company said in a statement.

Consumers Union maintained that in 75 out of 192 test runs, two of the vehicle's wheels left the ground when the driver simulated an emergency swerve.

The jury ruled that the magazine knew one statement was false: "Careful driving, however, is ultimately not the answer to the problem. Isuzu ... should never have allowed these vehicles on the road."

Isuzu lawyers said they believed evidence of false statements met the standard for malice, but "apparently the jury did not," said Andrew White, an attorney for the company.

"The press, as it should be, is protected by a very high standard when it comes to malice," White said.

Company officials said Trooper sales plummeted in 1996 because of the magazine article but have since rebounded.

   

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