In a lawsuit filed on April 15, 2024, Multiplier Capital LP is suing Digitas Inc. in the Second Appellate District Division Three of the Court of Appeal of the State of California. The case ID is B325996 and it was originally filed in Los Angeles County Superior Court under case number 19SMCV00009.
Multiplier Capital, represented by Levy, Small & Lallas and Leo D. Plotkin, alleges that Digitas owes an indebtedness to Kinetic Social LLC (Kinetic), a non-party in this case, under three written contracts. In these contracts, Kinetic agreed to place advertisements for Digitas's clients on Facebook in exchange for payments covering the cost of ad placements plus Kinetic's profit margin. Digitas, defended by Steptoe & Johnson, Robyn C. Crowther, Michael Dockterman and Cara A. Lawson, allegedly failed to fulfill its payment obligations.
The trial court initially ruled in favor of Digitas, concluding that Kinetic had no right to collect on these accounts receivable due to failure to "pass through" payments to Facebook for ad placements under other contracts with Digitas. However, Multiplier argues that there was no obligation for Kinetic to pass through payments or pay Facebook for ad placements as long as the ads were placed on Facebook.
Multiplier Capital is seeking a reversal of the initial judgment and entry of judgment in their favor on their breach of contract claims against Digitas.