Firm launches breach of contract and fraud action against PopSugar and Ebates
April 11, 2017 – Firm client Pop Middle East, a wholly-owned subsidiary of Nervora, Inc., a Dubai-based publisher specializing in premier digital content and advertising experiences in the fashion and lifestyle sectors, today filed a six-plus million dollar lawsuit against Bay Area online lifestyle platform PopSugar and leading cash-back shopping site Ebates, in connection with a multi-year license agreement for the ShopStyle brand, a popular online fashion marketplace. In its complaint filed in the federal district court in San Francisco, Pop Middle East says that PopSugar induced it, via financial disclosures and other assurances which Pop Middle East later learned were false and inaccurate, to become the exclusive licensee of ShopStyle in the Middle East and North Africa, charged with managing and promoting the brand through an Arabic-language site that PopSugar agreed to develop and launch. PopSugar failed to develop or launch that site, however, and earlier this month purported to unilaterally terminate the parties’ agreement without cause or reason of any kind. The latter action followed on the heels of the public announcement of ShopStyle’s acquisition by Ebates. The firm’s client contends it has spent hundreds of thousands of dollars in performing its obligations under the parties’ agreement, and has potentially lost millions of dollars as a result of its counterparties’ fraud and bad faith.