Circuit City Ramps Up Recovery Effort With $19M Suit

Law360, New York (December 14, 2009, 4:27 PM EST) -- Circuit City Stores Inc. has filed a $19 million breach of contract suit accusing advertising broker Active Media Services Inc. of unlawfully holding on to assets and cash that were meant to have funded television spots prior to the retailer's Chapter 11 filing.

The adversary complaint, filed Friday in the U.S. Bankruptcy Court for the Eastern District of Virginia, also accuses Pearl River, N.Y.-based Active Media Services of unjust enrichment in connection with prebankruptcy transfers that were part of an advertising agreement.

Despite repeated verbal and...
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