Media Square sees largest claim against Porta Communications struck out
The litigation between the former owners of marketing services group Media Square, who have since created another group called MSQ Partners, Porta Communications and its chief executive and chairman David Wright, has seen the largest claim for loss thrown out due to an unlikely prospect for success.
MSQ was formed in December 2011 after an £11m buyout of Media Square’s companies, after it was refused financial assistance by the bank with debts of around £26m.
Legal proceedings had already been brought against Porta Communications and Citigate founder Wright in December ahead of the MBO for £760,000, claiming that he led ‘an unlawful conspiracy’ to back the acquisition of all or part of the Media Square Group.
The largest claim, which was thrown out, was valued at £263,933, worth around 40 per cent of the Media Square claim.
Porta Communications released an update on proceedings this morning (27 July), continuing to refute the claims by Media Square and other claimants around a conspiracy against Media Square and incentive payments of £200,000 made to members of senior management.
It said that concern has been expressed regarding the ‘considerable’ evidentiary ‘hurdle to overcome’ in order to prove the claims regarding the payments. The judgement has also said that further evidence would need to be brought to substantiate Media Square’s claims towards other losses, including foresnic and legal costs of £124,600.
David Wright commented on the judgement; "we are obviously delighted by the findings of the Master, and believe that our stance has been completely vindicated as a result. We will continue to contest vigorously any action the claimants may wish to continue with."
MSQ Partners declined to comment.