LeEco sued over non-payment of dues to media, advertising agencies: Report

The lawsuits have been filed in Hong Kong court by Madison and Bombay court by Leo Burnett after LeEco failed to make payments for the period from January-December 2016

China-based electronics manufacturer LeEco has been sued over non-payment of dues by Indian media agency network Madison Media Group and Publicis-owned creative agency Leo Burnet.

The lawsuits have been filed in Hong Kong court by Madison and Bombay court by Leo Burnett after LeEco failed to make payments for from January-December 2016, according to a news report in the Economic Times.

According to the report, Madison is suing LeEco for Rs 39 crore plus interest and Leo Burnett has filed a case for dues of Rs 2.65 crore.

LeEco had spent Rs 50-80 crore a month on advertising and marketing between January and August 2016 to carve a top spot in a highly competitive smartphone market in India.

However, after spending so much on advertisement and marketing and the parent company getting cash-strapped, LeEco just disappeared from the market, a digital vendor whose dues are pending told the Economic Times.

According to the report, the company’s legal representative claimed that the company has not shut operations in India but the LeEco’s official Twitter handle, where the last tweet was made on June 15, shows a different story.

The case of LeEco's disappearance has made digital vendors and marketing companies wary of other China-based companies like Vivo, Oppo and Xiaomi.