We told you the s*** would hit the fan, see our late August post ‘7-Eleven, Home of (Big Gulp) LG And Harris Kit‘ and it surely now has with 7-Eleven Inc. filing a lawsuit in Dallas Federal Court against Digital Display Networks Inc (DDN) claiming that DDN owes it more than USD 5 Million.7-Eleven states that DDN has not paid it anything since November 2011 and seeks damages for breach of contract.
It’s unlikely that DDN have any money so suing them seems a little pointless (though, yes, no doubt one has to ‘go through the motions’) – as we mentioned before, we are surprised that 7-Eleven haven’t also gone after Harris – who are folks WITH money (and as someone trying to dispose of their broadcast division, a business that would surely be more likely to do some form of deal).
Whilst it’s likely that 7-Eleven will never see a cent of the USD 5 Million they are suing for they do have almost 5,000 stores with screens and broadcast equipment in. It’s our understanding that under the terms of the contract, as DDN have defaulted, all equipment already deployed will revert to 7-Eleven (even though that equipment of course was funded by Harris and LG). Even if that’s not exactly the case, DDN will not be a financial situation to de-install.
Whether that leaves PRN (now renamed IZON Media of course) with their ‘7-Eleven® TV Taps Premier Retail Networks (PRN) as Exclusive Ad Sales Representative‘ pyrrhic victory in a good place is anyone’s guess – though, as we pointed out at the time, the IZON Media deal is with DDN and not with 7-Eleven.
Case Number: 3:2012cv04292
Filed: October 24, 2012
Court: Texas Northern District Court
Office: Dallas Office
Presiding Judge: Sam A Lindsay