AMS Sues 'Hooked On Phonics' Cos. For $1.86M

Law360, New York (May 7, 2008, 12:00 AM EDT) -- Hoping to recoup money for customer returns on several educational book products, bankrupt book dealer Advanced Marketing Services Inc. is suing the producers of “Hooked on Phonics” for wrongfully withholding funds.

According to the complaint, filed Tuesday in the U.S. Bankruptcy Court for the District of Delaware, Educate Inc., Edge Acquisition LLC, Smarterville Productions LLC and its subsidiary Smarterville Inc. owe AMS roughly $1.86 million.

Before AMS petitioned for bankruptcy, it entered into an agreement with the companies for Hooked on Phonics products under which the...
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