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

[sft234]

After the July period was paied yesterday (as for many other too) we asked today via support center about when the August period will be paied, which was answered shorty afterwards like this:

Hi Team,

The expected date you will receive your August payment is within this day or up until tomorrow.

Please let us know if you have further questions. Thanks!

So there's hope...

[ecom-consultant]

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Digital River has a weird and obfucscated structure. I am wondering how our money is moved around between these companies:

- Digital River GmbH (Germany)
- Digital River Holding GmbH (Germany)
- Digital River Ltd (Ireland)
- Digital River (U.S.)

Does someone know more?

From public information in the other thread :

The other party in this document is Cerberus Business Finance Agency, NY.

It seems that Digital River borrowed from Cerberus and other parties on multiple occasions since 2021, and now this is fifth agreement. I have no idea what this contract means, does it mean that DR will pay debt to Cerberus before all other obligations, even in the event of default ?

Cerberus, cerberus... Has no one noticed? Doesn't that ring a bell (https://en.wikipedia.org/wiki/Cerberus)?

Cerberus is the multi-headed hell hound guarding the gates to the underworld, making sure that those who entered can never leave. So my theory is that DR was ordered to descend into the underworld, and loans from Cerberus are an instrument for that.

Cerberus was the lender brought in by Siris Capital. Digital River was unable to keep up with their debt payments to Cerberus. Barry Kasoff was brought on as a board observer in March at the request of Cerberus. He acquired the company in July. Here is a story about a similar situation with another company and lender:

Penny Saver (https://www.latimes.com/business/la-fi-pennysaver-opengate-20150527-story.html)

- Digital River GmbH (Germany): MyCommerce selling entity for digital only.
- Digital River Holding GmbH (Germany): This one is unfamiliar. It may have been setup after the acquisition by Barry Kasoff.
- Digital River Ltd (Ireland): Rest of world selling entity used for enterprise physical and digital commerce both onshore in the EU and cross-border.
- Digital River (U.S.): US selling entity for digital commerce. (DR GlobalTech is for physical in the US)

[Ros st]

We are working with digital river from more then 7 years. They are not releasing payments now and our 3 months money is with them (July, Aug, Sep). They still haven't paid us. I understand that some were paid, but we have not received anything further and have already lost hope of payment.

[ecom-consultant]

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If you have a suggestion why don't at least describe basics of it here for all to see? We've seen enough vague-but-actually-nothing tickets from DR.

And we're aware of layoffs in DR, many cases listed on thelayoff.com/digital-river

I'm actually sorry for all the people who lost their job there. Yes, we vendors lost money but we quickly switched to other payment processors and we're already receiving payments from them. It's not that easy when you lose a job, especially without any severance.

If you haven't tried this yet, at least get the complaint logged: https://digitalriver.service-now.com/csm (https://digitalriver.service-now.com/csm)

Company emails follow a first initial, last name @digitalriver.com format. You can try emailing their executives or go to LinkedIn and search for Digital River. You will see a person with a MyCommerce manager title under people. You will also find the CFO and others. I would try emailing all of them and/or messaging them on LinkedIn. I heard this week that they removed almost all of the executives from the DR site because they were getting so many angry emails. They cannot remove them from LinkedIn, and you can view a snapshot from June on the internet archive.

[dfatkvr]

No payment here yet. Case on "hold".

They have the nerve to charge 20min for a new support request that asked where the July payment was which they just closed and said sorry, we'll keep you updated in the other case.

I opened a new case telling them to correct this - are they going to try and bill again. Also Aug now due Nov 1.

[Ripped by DR]

Attention: They send invoices with the still outstanding payouts after the refunds! Now I have to go to a lawyer!
I think they will try to bill every ticket now!

[ptnd691]

@Ripped by DR same here MyCommerce Credit Note
To date, none of our hundreds of clients have received refunds, and while we received the payment for July, DR still owes us for August and September. The July payment has significantly reduced our losses, but the outstanding amounts continue to impact our finances. Possibly they paid July only to those that went the refund way, are there any counter example?

DR, operating with only 25% of its staff, owes hundreds of millions $ to thousands of small to medium business. If all these cases were to escalate to international court involving dozens of countries it will be quite fun. And we all have a solid case here: Digital River (DR) failed to honor their 60-day notice policy, ignored communications, and unilaterally changed fees without any consent.

Barry Kazoff, your name is now associated forever with the massive DR fraud, come and play, pay your international lawyers twice what you owe us, we wait for you )))

[harsha]

They didn't pay me after June, even not received the late July payment. but today received an invoice

digital River Client Support 386USD (I have opened a case to ask why my payments are late, and they just apologize)
Subscription Free 48 USD

I've spent my life savings, hoping they would pay me at the end of this so-called internal audit.

[sft234]

I thought the monthly subscription fee is $100? Why now only $48?

[kvrsof]

I thought the monthly subscription fee is $100? Why now only $48?

It's calculated pro-rate, this amount is obviously for Oct. 16 -31.

[PSP]

They didn't pay me after June, even not received the late July payment. but today received an invoice

digital River Client Support 386USD (I have opened a case to ask why my payments are late, and they just apologize)
Subscription Free 48 USD

I've spent my life savings, hoping they would pay me at the end of this so-called internal audit.

How did you get the invoice?

[grujicd]

They sent it this morning, email subject MyCommerce Credit Note 31-OCT-2024 [CRN_P]
Invoice was attached to it.

[grujicd]

Also, it's not a full invoice, with payment terms... It's more like usual credit note they send, except we're in minus for October because of the refunds, so now it's called invoice and not a credit note. Also, it's the only document they sent, it was not a zip with full list of transactions, i.e. their usual sales report. I assume that one will arrive on 30 November.

[MichaelPh]

Yes, for some reason, Digital River didn't wait 30 days, but immediately at midnight sent us a "credit notice".
This debt consists of the money that we returned to clients (which we did not get), half a month of "subscription fee", and also "technical support". I will be happy to answer them that we "presently don't consider this debt claims to be valid obligations", but I do not understand where to write

[microjohn]

I also received an email with Credit Note. It shows Digital River charge me USD 153.55 for client support. It's really shameless! They didn't abide by the contract, broke promises many times, didn't send payment but charge me for client support when I ask for my money. f**king ridiculous!!!