Radio One has filed a lawsuit in federal court against Direct Media Power Inc., alleging breach of contract.
While the complaint is six pages in length, it’s backed up by more than 180 pages worth of invoices, obtained by RBR+TVBR.
In the complaint filed in U.S. District Court for the Northern District of Illinois, Radio One says DMPI contracted with the radio owner to buy about $2 million in airtime for spots for DMPI clients. Radio one says it provided the airtime and aired the spots but “DMPI has failed to pay more than $1.3 million owed for these services.”
DMPI is based in Illinois, which is why the suit was filed there.
The situation dates back to 2013, when DMPI submitted a confidential credit application, signed by DMPI COO David DeFranzo, to Radio One to buy airtime. The company agreed payment was due within 30 days from the invoice date if payment was not made “within a reasonable period,” DMPI agreed to pay collection costs and Radio One’s legal fees.
Radio One invoiced the company monthly and says DMPI paid in full beginning in September 2014.
But from October 2014 through October 2015, DMPI bought more than $1.9 million worth of airtime and has only paid $526,871.76, according to Radio One in the complaint. The broadcaster agreed to a $18,821.04 billing adjustment and says DMPI now owes $1.363,810.45.
“Radio One has demanded that DMPI immediately satisfy these outstanding obligations in full, but DMPI has refused to do so,” it says in the complaint.
Radio One seeks the $1.363,810.45 plus “both pre-judgement and post-judgement” interest, collection costs and legal fees; the broadcaster demands a jury trial.
According to the invoices filed with the complaint and examined by RBR+TVBR, some of the stations the spots aired on were: WCHB(AM), Detroit, WKYS(FM), Washington, WOL(AM), Washington, WPHI(FM), Philadelphia, WTLC(AM), Indianapolis and WIZF(FM), Cincinnati.
