Blog Post

Spot Runner: ‘Sophisticated Investor’ WPP Was Given Opportunities To Sell Shares

Web-based TV ad agency Spot Runner has tried to reassure staffers over the weekend with a memo that could offer a clue as to how it plans to fight WPP Group’s $13 million lawsuit accusing the company of securities fraud and breach of contract. WPP, which holds a 3 percent stake in the company, is suing because it was not informed of the sale of Spot Runner shares between Feb. 2006 and March 2008.

The UK ad holding company, which initially bought $10 million worth of shares in Spot Runner as part of its third found back in Aug. 2006, says that if it had known about the earlier share sale, it would never have made an investment. WPP also says that the defendants — it specifically accuses Spot Runner CEO Nick Grouf, co-founder David Waxman and general counsel Peter Huie; as well as investors Bob Pittman, Index Ventures