DALLAS (CN) - 7-Eleven claims in court that Los Angeles-based Digital Display Networks owes it $4.6 million for digital ads in the chain of convenience stores.
Dallas-based 7-Eleven sued Digital Display Networks Dallas Federal Court.
It claims that under a 2008 agreement, Digital Display agreed to provide a turnkey network of high definition video monitors to display in-store and third-party advertisements.
A year later, the parties entered into a network services agreement in which Digital Display agreed to pay $99 a month for each connection it used on 7-Eleven's broadband network, according to the complaint.
"In essence, DDN needed access to 7-Eleven's broadband network to operate the digital signage and advertising network," the complaint states. "Without access to 7-Eleven's broadband network, DDN would not be able to operate its digital advertisement network."
7-Eleven says it has not been paid since November 2011, and that Digital Display owes it more than $4.6 million.
"DDN acknowledged and agreed that the network services agreement would automatically terminate should DDN fail to pay at least $2 million of the outstanding balance owed to 7-Eleven on or before October 1, 2012," the complaint states. "The $2 million payment was never received."
7-Eleven seeks actual damages for breach of contract. It is represented by Michael Logan, with of Kane Russell of Dallas.