Spot Runner Sued For $13 million In Securities Fraud

Authored by Jay Baage on April 17, 2009 - 1:04pm.

New York - WPP has filed a $13 million lawsuit against Spot Runner, the Los Angeles self-service ad creator in which it has a stake, as well as the agency's chairman-CEO, Nick Grouf, and its board for securities fraud and breach of contract, reports Ad Age. WPP claims that rather than try to improve and build up the company, Spot Runner “perpetuated a ‘pump-and-dump’ scheme in which they aggressively promoted the company to new investors (often by promoting that WPP was an investor in and supporter of the company) and then sold new investors large quantities of their own secondary shares at ever-increasing valuations.”

Published in DMW Daily, April 17, 2009

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Comments

What's wrong with taking

Submitted by anonymous (not verified) on April 17, 2009 - 3:00pm.

What's wrong with taking advantage of investors who didn't do their due diligence? Isn't that why pump-and-dump-specialist Grouf is the CEO?

Template-based,

Submitted by Plan B (not verified) on April 25, 2009 - 11:54am.

Template-based, self-produced and pre-produced TV ads are the road to failure, both for the company that pushes them, and for the know-nothing client that would be conned into buying them. All of these so-called high tech solutions to TV are scams of one sort or another. There are no exceptions to this rule.