• by Wendy Davis  @wendyndavis, Joe Mandese  @mp_joemandese, July 10, 2024

An appellate court rejected Compass Marketing's request to revive its federal suit against Flywheel Digital, the digital commerce company Omnicom acquired from Ascential plc for nearly a billion dollars late last year.

The July 3rd ruling by the U.S. Court of Appeals for the Fourth Circuit, means Flywheel, Ascential and others no longer face proceedings in federal court, but a state suit against them is still pending in Maryland.

In March 2023, Compass sued Flywheel, Ascential and five former Compass Marketing executives, in state court in Anne Arundel County, Maryland. That case is currently stayed.

"Now that the federal claims are complete our legal team will move to lift the stay in the state case in Annapolis and begin aggressive discovery, including depositions of the key Onnicom Flywheel individuals involved in the conspiracy, including CEO Duncan Painter, President Alex McCord, and Flywheel founders Patrick Miller and Chip Dipaula," Compass Marketing CEO John White tells MediaPost, noting: "Walmart’s recent digital shelf announcement reinforces that the damages are in the billions of dollars. We will also be amending the lawsuit to name Omnicom as a defendant in the ongoing conspiracy."

As part of its purchase of Flywheel Digital from Ascential plc, Omnicom obtained a “buy-side warranty” and indemnity insurance protecting it from potential liabilities associated with the purchase.