Vertis Holdings negotiates $2 million payment from lost mail lawsuit

By Kali Hays

New York, April 7 - Vertis Holdings, Inc. is seeking approval of a $2 million settlement agreement it reached with American Logistics Group, Inc., which does business as ALG Direct, Inc., according to an April 4 filing with the U.S. Bankruptcy Court for the District of Delaware.

In June 2011, Vertis filed a civil suit against ALG seeking unspecified damages claiming that the company was responsible for lost and late distribution of nearly 100 million direct mailers "related to 99 projects for some 33 clients of Vertis," according to the filing.

In November 2011, ALG filed a counterclaim of $12 million against Vertis for unpaid invoices related to the lost and/or late mail.

Under the terms of the agreement, ALG will pay Vertis $2 million and release all claims against Vertis in return for the release of all claims against ALG.

The agreement was reached during mediation discussions and Vertis claimed that "the settlement agreement will allow Vertis to avoid the delay and strain on its limited resources and its limited personnel associated with such litigation," according to the filing.

A hearing is scheduled for April 29.

Vertis, a Baltimore-based marketing communications company, filed for bankruptcy on Oct. 10, 2012. Its Chapter 11 case number is 12-12821.

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