Cumulus Gets Suit Over Barter Deal Moved To Federal Court
June 13, 2013 at 3:53 AM (PT)
A lawsuit filed by SETH EPSTEIN and PEACOCK PROPERTIES INVESTMENTS, INC. against CUMULUS MEDIA, INC. (CITADEL BROADCASTING CO.) has been moved from a MICHIGAN state court to the U.S. District Court for the Western District of MICHIGAN, LANSING Division.
The removal followed CUMULUS' motion showing to the court's satisfaction that the parties' citizenship is diverse and the amount of damages sought, which was stated as "in excess of $25,000" by the plaintiffs, in reality exceeded $75,000.
EPSTEIN and PEACOCK are suing over a barter deal by which PEACOCK provided office furniture to the former CITADEL clusters in LANSING and GRAND RAPIDS in exchange for 13,000 spots which PEACOCK could resell. A written settlement offer by the plaintiffs was for in excess of $75,000 -- an additional 10,000 spots for resale at between $35 and $110 per spot, meaning the suit seeks at least $350,000 and thus is eligible for removal to federal court.