Entercom Ends Agreement With USTN After $5 Million Lawsuit
Entercom announced the end of its advertising reseller agreement with United States Traffic Network in a release Monday, responding to a $5 million lawsuit filed by USTN against the radio broadcaster Friday. Entercom entered into negotiations to buy USTN and…
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“at the last minute, walked away from the sale,” and “informed USTN that it was going to develop a direct competitive business based upon the information gleaned during the due diligence/discovery process,” said USTN’s complaint in 269th District court in Harris County, Texas. “We are relieved to no longer be mired by the difficult USTN situation that was inherited as part of the CBS Radio merger,” Entercom CEO David Field said. “The lawsuit is entirely baseless, frivolous and frankly insulting.” Entercom ”worked tirelessly and constructively “to help USTN work through financial issues, the radio broadcaster said. “Entercom is owed substantial amounts of money by USTN, and the Company intends to defend itself vigorously and assert all of its rights,” Entercom said. USTN accused the company of intentionally inducing it to miss a scheduled debt payment “under the pretenses that this payment would be unnecessary due to the planned closing of the purchase transaction.”