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

[ccw]

Hello All, I have a question to big guys who wrote that lost 100-300-900 - were any changes? Did DR contact you?

On Nov 24, DR sent a message to us "This message confirms that the Due Diligence requirement has been completed as designated by our Compliance team. I'll update your case once our Accounting remove the hold payout in SAP."

Then every 3 days, they will send a message like below "We are currently awaiting confirmation from the accounting team regarding the release of the hold on your payout. We have followed up with them today and will provide you with an update as soon as it becomes available."

Till now, we still have not received any payment.

It seems they are delaying time by purpose.

[sft234]

The last time ANYBODY has received any money was on November 11th.
Since then nobody has received any money anymore no matter which KYC status and how long ago KYC was completed and confirmed as completed.

So I think DR is done now and nobody will see any money again ever.
They don't even issue statements anymore.

[dfatkvr]

They don't even issue statements anymore.

I got the statement Dec 3. Saying I have over $500 in support which is complete nonsense. I supposed the scam is if you send a message rejecting it, they will charge you for that as well.

[sft234]

They don't even issue statements anymore.

I got the statement Dec 3. Saying I have over $500 in support which is complete nonsense. I supposed the scam is if you send a message rejecting it, they will charge you for that as well.

That's not the obligate statement but a credit note.
The obligate statement should be issued 30 days after the end of a sales month and list all sales per product and currency. And say that this amount will be paied based on the agreement. Plus this statement then also should be listed in the statements section within the DR control panel. For us there's none for October so far.

And yes, they charged us around $600 suppoprt fees - support that was needed because of THEIR OWN mistakes

They're a f***ing gang of thieves, a criminal organization.
They lie, break contracts, steal money

This Barry Kasoff is a complete a**hole - a mafia guy.
We should report him to interpol

[Richard_Synapse]

That's not the obligate statement but a credit note.
The obligate statement should be issued 30 days after the end of a sales month and list all sales per product and currency.

Correct, without listing all individual sales the note is somewhat useless since the given amount cannot be verified properly. Having said this, we do not know if the credit note equals the statement for them. To me it looks that way, i.e. we will not see the old statements anymore.

Richard

[sft234]

That's not the obligate statement but a credit note.
The obligate statement should be issued 30 days after the end of a sales month and list all sales per product and currency.

Correct, without listing all individual sales the note is somewhat useless since the given amount cannot be verified properly. Having said this, we do not know if the credit note equals the statement for them. To me it looks that way, i.e. we will not see the old statements anymore.

Richard

Well, then they broke their own agreement in this point too (apart from not paying 30 days after the accepted statement). The relevant part in the agreement:

MyCommerce Master Services Agreement (6.3)

5. Payments and Reporting

(d) Payment. Within 30 calendar days of the end of each calendar month, Digital River will provide a statement through the Administration Interface of all Transactions for which Digital River has received payment in the preceding calendar month (the "Pay Period").

The credit note they send is not the same, this one is one day after the sales period for a temporary overwiew of income and fees. That's NOT a statement. Finally it's also called "Credit Note" and not statement. And its' also NOT listed within the statements section in the control panel. Our last statement lister there is the one for the September period.

[Tone2 Synthesizers]

Warning! If you agree with the upcoming contract 6.4 (January 6th) you will accept "Moving forward, this Agreement will be governed by the laws of the State of Minnesota in the USA".
This does mean that you'll have to go to court in the USA and not Germany/EU. So you will not longer be able to sue them easily and it means excessive costs. It will be much more difficult to get back the money they owe to you.

[Christian67587]

Which gives the question how to not accept the new contact if we are locked out of their control panel.

[sft234]

That's complete bull**it - A german GmbH is governed under German law, not US.
Most devs here are contracted to the German GmbH

[Tone2 Synthesizers]

"Dear Valued Customer,

We are writing to inform you of a recent update to our Master Services Agreement for MyCommerce, effective January 06, 2025.

We have changed the governing law and jurisdiction related to the Agreement.
Moving forward, this Agreement will be governed by the laws of the State of Minnesota in the USA, without reference to conflict of law principles. Additionally, any proceedings related to the Agreement will exclusively be held in the State of Minnesota, specifically in Hennepin County. Moving forward, it ensures clarity and consistency in our legal framework.

We also want to inform you that we have changed the registered address in the Master Services Agreement to Digital River GmbH, Wiesenhüttenstraße 11, 60329 Frankfurt am Main, Germany.

By continuing to access or use the MyCommerce platform after midnight CET on January 6th, 2025, you will accept the new terms of the Master Services Agreement.

We believe that this change will help streamline any potential legal matters and reinforce our commitment to upholding our obligations under the Agreement. If you have any questions, contact your Digital River MyCommerce team by submitting a new case through your Solution Center account.

Thank you for your continued support.


Best regards,
Your MyCommerce team"

[BertKoor]

> If you have any questions, contact your Digital River MyCommerce team by submitting a new case through your Solution Center account

Ka-ching!!!

[quikquak]

A few months ago I got a candid DR Solution Centre reply.
Someone called Joe Gohr appeared to be a real person (shock/horror), as some specific communication seemed to be coming from Joe.

"....
Digital River did recently exit out of the portfolio of Siris Capital, a private equity firm where we had made our home for the past decade. As part of that transaction, we have been spending a significant amount of effort with internal audits to identify areas where we have not acted in accordance with our internal controls. MyCommerce billing was one of these areas and as such we are required to adjust payment terms to meet the actual terms of our agreement with you. This is the reason for the recent change in payment cadence. However, this is a top priority matter with us and once additional details are made available by our Accounts Payable team, we will update you."

Do they really expect everything to blow over after they've sorted it out?

[ccw]

Hi,

I am thinking of hiring a lawyer to deal with the case.

I have the following questions:

1. What is the legal jurisdiction of Digital River? USA or Germany? Someone said it is USA, Minnesota. But also some one said it is Germany, Cologne.
2. Whether this is a Civil lawsuit or criminal case? Some one said one should report to Police(then it is a criminal case).
3. Can anyone estimate the cost(how many man hour of the lawyer) of the total lawsuit? I want to make sure it worths the costs.

Thanks

[BertKoor]

1. Conflict of Laws (which they do not "reference")

Many contracts and other forms of legally binding agreement include a jurisdiction or arbitration clause specifying the parties' choice of venue for any litigation (called a forum selection clause). In the EU, this is governed by the Rome I Regulation. Choice of law clauses may specify which laws the court or tribunal should apply to each aspect of the dispute.

Did any contract (preferrably one you explicitly agreed upon) state something about this?

It sounds like a weaseling move they now say "go to Minnesota court", especially if you, the customer, is in Germany or in the EU.

2. Civil. No laws are broken, just broken contractual obligations.

3. Costs: likely not even a lawyer can give you a quote. This is exactly why this topic was started, but two months later nothing really happened afaik.

I am not a lawyer and no party in this conflict.
Best of luck. You'll need it.

[dfatkvr]

2. Civil. No laws are broken, just broken contractual obligations.

Actually, what they are engaged in at this point is Software Piracy. Fit's the definition perfectly.