Owner of Los Angeles Times clashes with top editor over unpublished article

When Dr. Patrick Soon-Shiong, the billionaire owner of The Los Angeles Times, hired Kevin Merida as the newspaper's top editor nearly three years ago, praising the journalist as someone who would maintain the publication's high standards and journalistic integrity.

This winter, the professional heat between the two men had cooled. Their relationship was strained in part by a December incident when Dr. Soon-Shiong tried to dissuade Mr. Merida from pursuing a story about a wealthy California doctor and his dog, three people with knowledge of the interactions said . The doctor was an acquaintance of Dr. Soon-Shiong, the people said.

The previously unreported incident occurred as The Los Angeles Times, the largest news organization on the West Coast, struggled to reverse years of losses amid a tough newspaper market. Mr Merida resigned this month. Shortly thereafter, the company laid off about 115 journalists, or about 20 percent of its newsroom.

It is not unheard of for a publication's owner to be consulted about sensitive reporting, especially if it could put the newspaper in legal or financial jeopardy. But it is unusual for an owner or publisher to pressure editors to stop reporting on a story well before publication, especially in cases where government secrets or human lives are not at risk.

In a statement on Friday, Dr. Soon-Shiong characterization of his actions and called it 'factually incorrect'. The Los Angeles Times said in a statement that Dr. Soon-Shiong, who bought the newspaper in 2018, had requested “truthful, factual reporting” of the story.

In a letter to staff this month, Mr Merida said he had decided to resign after “considerable soul-searching into my career at this stage”. Dr. Soon-Shiong said at the time that it had been “mutually agreed” that Mr Merida would leave.

The confrontation of Dr. Soon-Shiong with Mr. Merida about the unfinished article arose from the work a business reporter did on Dr. Gary Michelson, a California surgeon who made his fortune through medical patents, said the three people with knowledge of the situation.

The reporter investigated dueling lawsuits involving Dr. Michelson was involved and allegations that his dog had bitten a woman in a Los Angeles park. In a lawsuit that Dr. Michelson in May, he said the woman had tried to extort him. The woman filed a personal injury lawsuit against Dr. Michelson.

Dr. Michelson, who lives in Los Angeles, and Dr. Soon-Shiong are among a small and rarefied group of medical professionals who have become billionaires through their innovations and investments. Dr. Soon-Shiong made his fortune in biotechnology. Both are philanthropists.

A spokesperson for Dr. Michelson did not return a request for comment.

Last month, before the news about Dr. Michelson had come to fruition, Dr. Soon-Shiong became aware of the story and contacted Mr. Merida to express his displeasure, the people said. Dr. Soon-Shiong told Mr Merida he did not believe the newspaper should continue with the article.

Mr. Merida conveyed Dr. Soon-Shiong to editors including Scott Kraft, a managing editor, and Jeff Bercovici, the business editor, the people said. The editors agreed to keep Mr. Merida informed about the article, which the newspaper continued to work on. Mr Bercovici was fired this month.

At one point Dr. Soon-Shiong for a draft of the article, which Mr. Merida deemed inappropriate, the people said. Dr. Soon-Shiong also told Mr. Merida in a phone call that he would fire journalists if he found out they were hiding the completed article from him, the people said.

A spokeswoman for the Los Angeles Times said in a statement that Dr. Soon-Shiong did not want the newspaper to be used as a “source of exploitation” in the dispute between Dr. Michelson and the woman who accused him.

“Dr. Soon-Shiong had insisted that the facts be gathered from both sides,” she said. “This request for truthful, factual reporting was made by Dr. Soon-Shiong, no matter who was involved in this “dog bite” story. He simply urged the editors to ensure an investigation was done before publishing a story.

The incident weighed on Mr. Merida, two of the people said. The editor had already had an argument with the Soon-Shiong family over issues including the newspaper's budget. Mr. Merida was willing to possibly resign if the article about Dr. Michelson was ready and Dr. Soon-Shiong blocked its publication, the two people said.

The newspaper has not had a single article about Dr. Michelson published.

Laurence Darmiento, the reporter who worked on the article, said he continued to tell the story. He said he was aware the story was sensitive, like all articles about wealthy Los Angeles residents, adding that his editors never told him to stop working on it.

“Furthermore, I had no first-hand knowledge of what was happening behind the scenes,” Mr. Darmiento said. “Last week, despite all the unrest at The Times, I did some reporting on it.”