OKLAHOMA CITY, May 10 (UPI) -- Oklahoma City charity Feed The Children says it is being sued by a New York advertising agency for alleged breach of contract.
New York company Cross MediaWorks says it is suing in Oklahoma City federal court for "compensatory damages" claiming it has a three-year agreement to conduct all of Feed The Children's media buys. The ad agency alleges the charity brought in a Texas company, Stratmark Ltd., to make direct-mail ads, thereby breaching their exclusive agreement, The Oklahoman reported Monday.
Feed The Children alleges its agreement with Cross MediaWorks is not valid. It also says the charity used another company for direct mailings and the ad agency knew it but never objected until now.
Cross MediaWorks stands to lose 10 percent of the charity's $32 million spent on television and radio spots and $27 million on direct mail, the newspaper said.
Cross MediaWorks is also suing Stratmark Ltd. along with other companies that it alleges interfered with its contractual relationship with Feed The Children.
