Harry Winston is suing the defunct Lipman ad agency, alleging it took $1 million in cash payments for media services and diverted those funds to its parent company.
The suit, filed Sept. 24 in New York state civil court, targets Lipman Operating and Revolate Holding, the company it calls the agency’s owner.
New York City-based Lipman, known for its advertising work for luxury brands such as David Yurman, filed for Chapter 7 on Sept. 24.
In its court filings, Harry Winston claims that it remitted $1.014 million to Lipman for its media services, including ad buys in prominent publications, but that the money wasn’t paid to the publications. In the end, the court documents state, Harry Winston had to pay another $523,895 to the publishers in order to not be blocked in making further media buys.
The suit’s numerous allegations include breach of contract and breach of fiduciary duty. It seeks the original $1.014 million, $200,000 in agency fees, attorney fees, as well as $5 million in punitive damages.