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

[dyamicaliri]

Personally I'm not at all worried about maintaining a claim to the funds. I don't think there is any reason to believe that they will pay, or even have the funds left over to be able to pay once they enter bankruptcy.

[dyamicaliri]

Remember, they are not acting in good faith. They were intentionally misleading us in order to take as much of our funds as possible. This isn't just some company that has run into hard times and can't afford to pay it's creditors.

[uk_drmc_customer]

I am based in the UK and started my company 18 years ago and for the past 10 years have sold PDF comparison software that I developed. I have used Digital River/MyCommerce (DRMC) since I started selling my software.

I first asked DRMC to pay the amount they owed me for my July sales on 4th September and they have been fobbing me off—and now, I believe, knowingly lying to me—since then. Yesterday I ceased trading and will wind up (close) my business early next year or earlier if DRMC either pays me or goes bust or I am convinced that there is no prospect of ever being paid.

My most recent message to them on my "Solution Center" "case" is this:

Since I have rejected your new contract "MSA 6.3" you are not entitled to charge me any monthly fees and I have notified my bank not to pay you anything.

My business has now ceased trading but remains in existence awaiting the money you owe it.

I have calculated that you owe [my company] a minimum of £10,880.43 of which £8,293.29 is already long overdue in breach of the contract and should be paid immediately.

Once you have paid in full I expect you to close this account.

In the UK we have a procedure that used to be called the "Small Claims Court" but has now been renamed. Is there anyone else in the UK who has been affected by this? Anyone who has tried the "Make a court claim for money" process against DRMC?

PS According to this The Layoff post DRMC is likely to go bankrupt next month. Of course I have no way of knowing if this is true.

[quikquak]

It feels like they have already crashed, and we’re just waiting for their lawyers to trigger it officially.

[elassi]

If they know that their company will crash or has crashed already it's called "Insolvenzverschleppung" in Germany - it's a serious crime and thus punishable (up to 3 years jail and/or fine).

[quikquak]

Wow, nice. But are the American owners going bankrupt or just the MyCommerce side of things?

[dyamicaliri]

We are a US-based company that is not using MyCommerce. However, we were told that they are not going to renew our contract at the end of January 2025. Whether or not the US Digital River Inc is going bust, they used all of the same tactics with us: breached the contract by not paying us, claimed they had a right to hold ALL our money even though the contract says they can only hold 'a reasonable estimate to cover refunds/chargebacks', and that is only AFTER they notified us of the non-renewal. They held our money for multiple pay periods BEFORE telling us about the non-renewal of the contract. They also pawned us off on their lawyers who said exactly the same things they are telling the MyCommerce merchants.

So even if they aren't going out of business, every Digital River Inc merchant should be aware of DR's bad faith actions, because we will all become a victim of it eventually.

[DrOli]

I put in other post: viewtopic.php?t=612462&start=600
That 3 days after triggering refund, first customer reported that money arrived.

[elassi]

misinformation ...

[uk_drmc_customer]

Some links to others who have been affected:

Capitalware

Blue Iris

Monkey Bread Software This also has a link to a German news site article about Digital River.

Here's an article from a New Zeland newspaper (needs registration but the headline and first para are visible and sufficient to get the drift):
BusinessDesk.

[sft234]

Well, it's probably thousands worldwide affected - not only audio plugin manufacturers. And not only small companies - some also reported that MyCommerce owes them close to 1 million USD. Read through this thread:
viewtopic.php?t=612462

It's unbelievable that authorities don't do anything about it.
Where's the law? How can it be that a legal company with 30 billion sales volume and managers earning millions can cheat thousands of businesses all around the globe - which also will lead to massive tax losses - and nobody can do anything about it?

Where is the rule of law?

[Urs]

[...] like Urs from u-he.com already did.

Sorry, but that's not true. Not sure where that information is coming from.

[elassi]

[...] like Urs from u-he.com already did.

Sorry, but that's not true. Not sure where that information is coming from.

*eek*

I was sure I've read this. I was obviously wrong. Sorry!

(edit my post now)

[Urs]

[...] like Urs from u-he.com already did.

Sorry, but that's not true. Not sure where that information is coming from.

*eek*

I was sure I've read this. I was obviously wrong. Sorry!

(edit my post now)

[dyamicaliri]

Have you seen this?
https://www.thelayoff.com/t/1v6ckGhZ

Someone claiming inside information says the whole company (including the US) is going bankrupt in November.