Rosie countersues publisher

— Former talk show host Rosie O'Donnell filed a $125 million lawsuit Monday, alleging the publisher of Rosie magazine breached their contract and caused the publication's demise.

Earlier this month, publisher Gruner + Jahr sued O'Donnell for more than $100 million, alleging that O'Donnell's behavior led to the magazine's collapse.

O'Donnell also filed a separate response to G+J's lawsuit, denying any wrongdoing.

Rosie debuted in April 2001 as an effort to revive struggling McCall's magazine. The joint venture gave O'Donnell and G+J each a 50 percent stake in the business.

In the first half of this year, Rosie's average paid circulation was 3.5 million, according to the Audit Bureau of Circulations. But newsstand sales were slipping, and O'Donnell and G+J had reportedly clashed about what the magazine's cover needed to be like to improve sales.

O'Donnell quit Rosie magazine in September; the final issue is expected to go on sale next month.


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