You must demand a correction now. Let me tell you why.
California law limits the amount of damages a defamed party can sue for in certain circumstances depending on whether they have first demanded a correction. If a defamatory statement is made on a radio broadcast and/or published in a newspaper, you must demand a correction (of the radio broadcaster or newspaper publisher) within 20 days after learning of the slanderous/libelous comments, pursuant to Civil Code section 48a.
If you don’t demand a correction within the applicable period of time you are limited to special damages. This is potentially devastating because special damages generally refer to a quantifiable loss, e.g., loss of business profits, which is more difficult to establish than general damages. It’s especially a big mistake to blow the 20 day period if the defendant’s statements were arguably made with malice because punitive damages are a "big stick" in defamation cases. And trust me, you want to hold onto the big stick if you want to negotiate a settlement.
So it’s clear by now that you need to demand a correction. Do it now.