We reported Radio One sued Direct Media Power for about $2 million, alleging it hasn’t been paid for ads the broadcaster ran.
Now DMP has counter-sued, claiming the broadcaster over-billed. And now a third company is in the mix, having just filed a lawsuit against DMP for breach of contract.
Radio One alleged DMP stopped paying for ads it purchased; that’s why it sued DMP in U.S. District Court last month, we reported.
Now, has counter-sued asking for “injunctive relief and monetary damages.”
DMP alleges Radio One ran spots without insertion orders and at the wrong times, in addition to over-billing. DMP seeks a jury trial.
Now, Westwood One is suing DMP in the New York Supreme Court.
It too, is alleging non-payment for radio spots, and suing for breach of contract, according to court filings examined by RBR+TVBR.
“DMP clients pay to DMP the full cost of media time purchased through DMP which DMP then pays to the media provider, less the industry-standard agency fee equal to 15% of the cost of purchased media time,” states Westwood.
Since the fourth quarter of 2014 through August of 2015, DMP “failed to pay for media time that it purchased from Westwood One in the amount of $448,945.47.”
“The sum has not been paid by DMP despite repeated verbal and written demands,” says WWO in its complaint. It adds DMP has been “unjustly enriched” by accepting Westwood’s services without payment.
Westwood One seeks the amount its owed, plus interest and attorney’s fees.
The case has been assigned to Judge Jesse Furman and a pre-trial conference has been set for May 11.