COMPANY TOWN ANNEX

Payola Case Heads for Trial: After eight years and an estimated $10 million in government expenditures, the biggest payola case in history is set to go to trial May 9. There is still a possibility that the case, in which record promoter Joe Isgro was indicted in 1989 in Los Angeles on more than 50 felony counts, could be resolved in the weeks ahead with a plea arrangement. But Judge Consuelo B. Marshall ignored a request by the Justice Department seeking more time and told prosecutors from the Organized Crime and Racketeering Strike Force to begin preparing for trial. A status conference is scheduled March 25 to consider a defense motion to dismiss the case. Defense lawyers contend the government has exceeded the number of days allowed under the speedy trial act.