Ex-executives sue S4 Capital over millions

Three former executives from CitrusByte, acquired by S4 Capital in 2022, have filed a lawsuit alleging that S4 has withheld millions in payments and shares. The suit claims S4 has engaged in a "campaign of obfuscation and delay" to avoid its financial obligations, including at least $7 million held in escrow. S4 Capital, the digital marketing group founded by Martin Sorrell following his departure from WPP, has not yet formally responded to the claims, which were lodged earlier this month in Delaware Superior Court. The plaintiffs, Brady Brim-DeForest, William Jessup, and David Kullmann, assert that S4 is using an unrelated legal dispute with a former executive, Yoav Cohen, as a pretext to withhold funds. They argue that liabilities from before S4's ownership should not apply to them and that S4 settled the Cohen matter without their consent. The lawsuit also claims S4 delayed or failed to issue shares due to the executives in 2025. This legal challenge comes at a difficult time for S4 Capital, which has seen its stock value drop significantly and has implemented cost-saving measures, including a reduction in its workforce to 6,150 employees as of June this year, down from a peak of over 9,000.