Varnson Group Not Answering Phones as Steak n Shake Suit Heads to Settlement Conference

(MoneyWatch)  The Varnson Group's web site no longer functions and agency staff are not answering three of its listed phone numbers. Two phone lines are no longer connected and the third just rings and rings. The development comes after Varnson was sued by former client Steak n Shake, which alleged that the shop had kidnapped its web site and image library and was holding them for a ransom of $449,000 in allegedly unpaid billings.

When asked whether the agency still existed, a lawyer for Varnson replied "yes." When informed that the agency was electronically incommunicado she said "I do not know that." She declined further comment.

The limbo-like state of Varnson was first noticed by the Tribble Agency blog, which noticed an uptick in Google search activity for Varnson and the nonfunctional VarnsonGroup.com site.

In the lawsuit, SNS claim Varnson refused to turn over control and access to SteaknShakeValueVault.com, a coupon download site.

In response, CEO Alan Varnson (pictured) claimed that despite tempting Varnson with agency of record status on the account, SNS CEO Sardar Biglari immediately began talking to competing agencies. A billing dispute ensued. An amended claim and response show that Varnson has dropped its allegations regarding Biglari courting other shops, and that SNS has regained control of its web site from the agency.

SNS and Varnson are scheduled for a settlement conference on July 13. Download documents in the case here.

• Previously:
• Steak n Shake Sues Varnson for Kidnapping Its Web Site; Hijacking Image Library