Report: CBS Radio Sues Sponge Tech For Unpaid Bills
April 5, 2010 at 4:23 AM (PT)
Its product may be the "smarter sponge," as its promotion suggests, but SPONGE TECH DELIVERY SYSTEMS is facing a lawsuit from CBS RADIO for failing to pay a $366,231 bill for ads on Sports FAN-A/NEW YORK, according to the NEW YORK POST.
CBS joins other companies suing SPONGE TECH for unpaid bills, including the NEW YORK GIANTS, CIT FIELD and MADISON SQUARE GARDEN.
The suit alleges that SPONGE TECH Comptroller MARK KRONECKER signed an "affidavit of confession" admitting the company owed the money but the company then allegedly defaulted on two payments, bringing the balance to $383,112 with interest and costs. SPONGE TECH CEO STEVE BERKOWITZ told the POST that the company does not owe CBS RADIO money and said he had not seen the suit.