Relativity Media Sued by Digital Ad Agency

Add one more plaintiff to the growing list of vendors and investors who have filed suit against Relativity Media.

Unfold Agency, a digital ad maker, sued the studio on Thursday in Santa Monica Superior Court, alleging that Relativity has failed to pay more than $70,000. The company alleges that it was hired to create a cutting-edge “rich media” ad campaign for two Relativity films — “Masterminds” and “Before I Wake.”

According to the suit, “Plaintiff incurred significant effort and expense. Plaintiff fully performed under the terms of the agreement and created a vibrant and dynamic online digital advertising campaign” for the two films.

Unfold sent two invoices — one for $8,750 for “Before I Wake,” and another for $80,000 for “Masterminds.” Unfold’s representatives were invited to the premiere of “Masterminds,” but the invoices were not paid, Unfold alleges.

In December 2016, Relativity paid $20,000, but still owes $70,426.74, according to the suit.

Also on Thursday, investor Carey Metz filed suit in Los Angeles Superior Court, alleging that Relativity CEO Ryan Kavanaugh defrauded him out of $2 million.

Relativity filed for Chapter 11 protection in 2015, and emerged from bankruptcy in April 2016. The company continues to fight litigation on several fronts, including a lawsuit seeking unpaid rent on its headquarters.

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