Rolling Stone, the storied magazine covering youth culture, had two significant developments on Wednesday. The first was news that Jann Wenner was selling his stake to Variety owner Jay Penske in a deal that reportedly values the publication at $100 million. But there's more. In New York federal court, Rolling Stone also wrapped up the last remaining piece of litigation emanating from its controversial and since retracted 2014 article about the gang rape of a freshman identified as "Jackie" at a University of Virginia campus fraternity.
The defamation lawsuit was brought by three members of the Virginia Alpha Chapter of the Phi Kappa Psi fraternity where "Jackie" was allegedly raped. The claims were initially dismissed by a federal judge before being revived in September by the 2nd Circuit Court of Appeals. Now, the parties have stipulated to dismissal in a court filing that quietly came as word was spreading about Penske's purchase.
The settlement is the third for Rolling Stone over that Sabrina Rudin Erdely-written article, titled "A Rape on Campus," which prompted a commissioned investigation by the Columbia School of Journalism over its faults.