Commentary

Feuding Ad Shops Holster Their Guns

A bitter legal dispute between WPP’s Y&R and shopper marketing specialist Mars Advertising appears to be nearing settlement according to sources. Mars -- based in Southfield, MI -- and Y&R agreed to form a London-based joint venture in May 2011 to provide shopper marketing services to European clients. But the once promising venture devolved into a series of accusations and recriminations that ended up in the U.S. District Court in Manhattan earlier this year.  Mars—based in Southfield, MI., alleged that Y&R failed to deliver numerous resources and services that it agreed to under the joint venture agreement. And last year Y&R launched Red Fuse, which also provides shopper marketing services. The agency shifted client work to it that the Mars-Y&R venture had previously handled, in violation of the joint venture terms, Mars alleged. Y&R filed counterclaims, charging Mars with breach of contract for failure to pay agreed-upon fees for shared clients under the joint venture and for rent for office space. Y&R said Mars owed it about $885,000 in payments due under the venture’s terms. But while the fur has been flying in the court battle that began eight months ago, it now appears that a finalized settlement may be just a week or two away, per sources. Who keeps the house and who gets the kids remains to be seen. 

advertisement

advertisement

Next story loading loading..