NORWALK: Another Internet marketing conflict has hit the courts as Austin, TX based Adscend Media is suing competitor Chicago and Norwalk based DoGood Media for $3.5 million claiming the company used fraudulent advertising to overplay “one time mistake” to undermine the company.
Adscend Media sued in U.S. District Court in Hartford, Adscend Media claiming it lost s it has “lost millions in ad revenue”and that some of its websites were blacklisted.
Adscend has claimed that a “programming error” made by an employee, resulted in users being shown multiple times instead of the correct video. AM said it discovered the error and corrected it, but that a DoGood Media’s account manager, Eric Farrell, created a video “A Look at Adscend Media’s Deceptive Ad Monetization System” claiming the video said Adscend Media was defrauding advertisers.
The lawsuit filing came soon after the video reached advertisers with the company claiming advertisers SpotX, WhiteOps were blocking Adscend websites and ads.
In addition to the damages Adscend is seeking the video be removed from You Tube.
Adscend is represented, Tarter Krinsky & Drogin in New York City.