Spot Runner Loses $2.2 Mil. Stock Lawsuit (WPP Woes Ongoing)

(MoneyWatch)  Spot Runner founders Nick Grouf and David Waxman have lost a lawsuit filed by consultant Adam Shaw claiming 2.5 percent of the company's stock. The company is also being sued by WPP, an investor in Spot Runner, over claims that its management sold their stock without telling WPP in violation of their agreement.

It would seem that Spot Runner management just isn't all that lucky when it comes to contractual stock agreements.

A California arbitration panel found that Shaw was one of the originators of the company and that although he was only a consultant he did have a valid stock agreement . Spot Runner must now give Shaw $2.2 million plus 10 percent interest, according to court documents.

PaidContent gave this background:

Shaw told the panel he came up with the idea for Spot Runner while he was an executive with the NFL Network and approached family friend Grouf, a founder of PeoplePC, in 2004 with a business plan for something he called "AdVision" that would use a website to sell unused and available local cable ad time to small businesses. According to the arbitration panel, Grouf denied that and said all Shaw had done was tell him about the existence of a large amount of unsold cable ad time.

The relationship between Shaw, Grouf and Waxman began to sour in 2007, when, the documents state:

David Waxman, stated to Grouf that Spot Runner was getting nothing for its $6,250 monthly consulting fee.

Shaw got no payments after that until his stock agreement vested. But when he wanted to exercize his stock option, Grouf and Spot Runner declined to honor it.

A close examination of the documents raises the question of whether Grouf can read. On page 41 of this document, the 2.5 percent of stock clause in Shaw's contract is as plain as day, and Grouf has signed the document. More here.

• Previously:
• WPP Accuses Spot Runner of $54 Million Scam; Was Sorrell Asleep at the Wheel?