MWWPR Sued by Scholastic for $700,000 in Unpaid Invoices
Michael Kempner Owned Firm Urges Scholastic To Contact Samsung For Payment Directly
In a lawsuit recently filed in United States District Court, Southern District of New York, Scholastic has filed a lawsuit against MWWPR seeking $699,377.01 plus legal damages for a series of unpaid bills. The lawsuit claims that Scholastic provided educational materials for MWW Public Relations – which was used for their client Samsung – yet the PR firm refuses to pay past-due invoices.
The allegation claims that, “The Agreement between Scholastic and MWW Group (Editor’s note – the firms legal name) was amended several times to include additional projects, all of which Scholastic completed to MWW’s satisfaction” and that there is no dispute that the goods were provided. There is no dispute that Scholastic delivered all of the agreed-upon materials and related services and that MWW agreed to pay Scholastic for these materials and services.”
The lawsuit further notes that the Michael Kempner owned PR firm, “agreed to pay Scholastic an additional $360,000 for a project titled “Samsung & Operation Military Kids” and an additional $350,000 for a project titled “Samsung & Camp Fire.”
On January 11, 2016, in response to repeated queries for payment, MWW informed Scholastic: “we will not be making any additional payments on the account as we are in a dispute with Samsung.” MWWPR further advised that Scholastic “should contact Samsung directly for payment on all amounts outstanding.” The lawsuit notes, “Samsung is not a party to the Agreement and all payment obligations under the Agreement flow directly from MWW to Scholastic.”
Notably, Samsung is not named in the lawsuit, and according to Samsung website MWW still represents them. Current past due invoices are $699,377.01, for which Scholastic seeks immediate payment, plus legal fees.
Will MWW PR cough up the fees, sue Samsung, or file a response to Scholastic? Inquiries to MWW PR and Samsung are as of press time unreturned. We will keep readers posted on developments.