By Greg Hazley
Sitrick and Company and Ogilvy PR are working opposite PR ends of a legal tussle over an acquisition between VisionChina Media and two venture capital firms.
New York State Supreme Court on Jan. 7 held VisionMedia, a TV advertising network for mass transit which is based in Beijing, in contempt for failing to put up $60M from an August court order.
The $60M payment stems from a breach of contract suit between the firms -- Gobi Partners and Oak Investment Partners -- and VisionChina, which acquired Digital Media Group from Gobi and Oak in 2009. The New York court said VisionMedia must put up the cash to compensate the VC firms if they win a suit over the deal.
VisionChina, which works with Ogilvy for its U.S. PR, said today that it cannot transfer most of the payment because of Chinese restrictions on foreign exchanges. Its appeal is slated for New York appellate court on Jan. 15.
The VC firms are working with Sitrick for PR during the legal showdown, confirmed CEO Mike Sitrick.
The VC firms said via Sitrick New York staffer Lance Ignon that in wake of the contempt finding this week they plan to pursue additional damages expected to exceed $100M. The firms back a website, SaveVisionChina.com, that criticizes VisionChina's leadership and highlights the court battle.
VisionChina said it will continue to "vigorously pursue" its appeal to revive claims against Gobi and Oak for fraud and other relief. |