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DALLAS -- 7-Eleven Inc. has filed a lawsuit in Dallas Federal Court against Los Angeles-based Digital Display Networks (DDN), claiming it owes more than $4.6 million for digital ads displayed in the convenience store chain, reports Courthouse news.
According to the lawsuit, in 2008 DDN agreed to provide a turnkey network of high definition video monitors to display in-store and third-party advertisements; one year later, DDN and 7-Eleven formed a network services agreement through which DDN was responsible for paying $99 a month for each connection it used on the c-store chain's broadband network.
"In essence, DDN needed access to 7-Eleven's broadband network to operate the digital signage and advertising network," the lawsuit states. "Without access to 7-Eleven's broadband network, DDN would not be able to operate its digital advertisement network."
7-Eleven stated that DDN has not paid since November 2011.
"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 lawsuit states. "The $2 million payment was never received."
7-Eleven seeks actual damages for breach of contract, according to the report.