Rallying Vendors Affected by Digital River Payment Issues for a Class Action Lawsuit

[lexa-a]

First link can be found by googling: "Digital River STAY AWAY COLLAPSING"
For last link google: "Barry Louis KASOFF personal appointments"

[microjohn]

AUTO-ADMIN: Non-MP3, WAV, OGG, SoundCloud, YouTube, Vimeo, Twitter and Facebook links in this post have been protected automatically. Once the member reaches 5 posts the links will function as normal.

The same with you guys, all our income from July were stolen by Digital River. They even confirmed to send last month, see our record https://ibb.co/kgDqQS9 (https://ibb.co/kgDqQS9)
It's difficult for all of us, but don't give up.
Shouldn't Germany and the United States have special agencies dealing with this massive fraud?

[bartjonkman]

Count me in

[quikquak]

I'm not sure now.

[Jeff McClintock]

WTF. I thought I just hadn't made any sales the last couple of months. But Digital River has been keeping the money?

[hobnob]

Has anyone thought about turning the tables and refunding all 3 months orders? if that is a problem, then ask the clients to do it?
then the mycommerce account will have zero/negative funds left. the way I see it, it looks slim that they will pay out now otherwise they would have communicated it by now.

[hobnob]

Hi, everyone please contact the register about digital river (MyCommerce) and let them know.

remove the spaces from the below. the more people do it the more chance of being in the news.

theregister.com / Author / Email / encrypted-message-desk

[Simple_Guy]

Count me in.

Has anyone thought about turning the tables and refunding all 3 months orders?

Yes, I plan to refund all the latest orders.

[pekbro]

Pretty sure you cant really receive monies from a company that goes insolvent upon winning a civil suit against them, since insolvency relieves them of their debts... That's how it works in the states at least. That's the whole reason to do that in the first place.

*Maybe if you can go after the principals...

*Otherwise, a civil suit could present even more unrecoverable cost, regardless of the outcome.
Not to mention, active civile suits against them provide more evidence in favor of debt relief
avenues.

[ssec]

I am in.

In the contract / agreement we all have with MyCommerce it says that publishers outside the US will deal with DR Germany, while in the US/Canada, they will deal with Minnesota. Bankruptcy rules in Germany probably different.

If DR goes bankrupt (can they go bankrupt just in Germany , or just MyCommerce, I do not know) then there will be a process to repay creditors depending on who is owned money / how much. If we can't recover our money fully we can still recover partly, e.g 50c to the dollar. But if they declare bankruptcy they assets will be frozen and also directors, past directors, to make sure there was no fraudulent behavior ... think FTX ...

In the contract it says that if there is a breach of the terms of the contract, parties have 30 days to remedy. The breach happened 30Sep for July payout.

[IaES]

If German law is anything like UK law then a company must immediately stop trading if it gets into a situation where it is insolvent - ie unable to pay its debts.

If such a company continues trading after that point then the directors are breaking the law and can be prosecuted.

A company that can't pay its debts goes into a state where 'receivers'. The receivers are a company/officers appointed by law in place of directors to wind up the accounts by #1 chasing everyone who owes money to the company but #2 does not pay any debts. So, it gets as much money in without paying any money out.

Then it pays people it owes in a certain order. Tax is first on the list and other government bodies. If anything is left then maybe employees get paid and eventually, way down on the list, there us guys.

But remember we are dealing with the german side of DR. DR GmbH. A totally independent company limited by its own assets. DR USA could have billions but they don't have to pay DR Germany's debts.

But if DR USA are clever they coud sent DR GmbH a big invoice for some imaginary item such as use of logo or name or some made up sh*t and that big invoice will be equal to all of DR GmbH's assets. If DR German pay that invoice before calling in the receivers then it would mean there's no money at all in DR Germany.

Our problem is with DR GmbH. That GmbH is similar to a LTD or LLC and it means that our argument is ONLY with the german side of DR. Even if DR USA have billions they are not liable for for DR Germany's debts.

[ssec]

DR processes large amounts of transactions each month and they keep just around 5 to 6%. It's their business model.
If their total sales as the MoR are like 100mil, they pay out 94m out and keep 6m, as an example.
In a year, if they sell 1 billion of products, they keep 60mil, etc.
By not paying out since July to any publisher, they must have A LOT of money in their accounts compared to normal.
It's not that our products did not sell....
That money (our money) must be somewhere...

[IaES]

Count me in.

Has anyone thought about turning the tables and refunding all 3 months orders?

Yes, I plan to refund all the latest orders.

Please let us know. Is DR making the refunds?

[IaES]

Count me in.

Has anyone thought about turning the tables and refunding all 3 months orders?

Yes, I plan to refund all the latest orders.

Please let us know. Is DR making the refunds?

I might go through the last 3 months sales and any buyer who I recognize - ie who I've supported - I'll maybe refund them and ask them to go back through checkout with a nice discount coupon. But I won't bother anyone I don't know. I'll obviously give tech support even though I never got their money.

To be honest I've accepted my loss. Maybe 13,000 USD. Just getting on with life now. But this forum is interesting so will keep visiting to see how you guys are getting on.

[David2024]

The longer the delay, the lower our chances of receiving the payment. Is there anyone who can reach out to a current employee at Digital River?