A federal judge who had ruled against a Purchase media company in a breach of contract case changed his mind and awarded the company nearly $1.2 million on Dec. 12.
U.S. District Court Judge Kenneth M. Karas found that Regency Management services failed to pay Townsquare Media Inc. for advertising contracts from December 2019 to May 2021.
Townsquare operates radio stations and websites in hundreds of towns outside of the top 50 U.S. markets. Regency is based in Brandywine, Maryland and sells furniture at stores in the Washington metropolitan area, Pennsylvania and New Hampshire.
In 2021, Townsquare sued Regency for $777,389, alleging failure to pay for radio and digital advertisements.
In 2022, Judge Karas concluded, Townsquare failed to establish monetary damages on most of the contracts. He ordered Townsquare a partial award of about $115,000 but ruled in favor of Regency on most of the deals.
Townsquare asked for reconsideration, and in 2023 Karas concluded that he had overlooked evidence on ten advertising contracts. He held a bench trial on June 3, 2025.
Regency argued that Townsquare Media Inc. had no standing to sue because the advertising invoices carried the logos of other entities: Townsquare Ignite, Townsquare Media – Shore, and Townsquare Media – Trenton. These legally distinct entities, not Townsquare Media Inc., according to Regency, should have sued.
The evidence “cuts in favor” of Townsquare, Karas found. The Ignite logo, for instance, is owned by Townsquare Media, and the small print at the bottom of the invoices explains how to pay “your Townsquare Media invoices.” Â He found no evidence that Townsquare assigned its rights to another entity, and he noted that Regency’s legal duty was to the entity with whom it contracted.
As to standing, the time to raise that argument is at the outset of a case, Karas said. Yet, Regency has “not provided any cogent explanation for their failure to raise this argument in the nearly five years that this case has been before the court, and it is therefore waived.”
Karas found that the evidence conclusively established that Townsquare Media, and not another entity, performed on the contract. And Regency did not dispute that it “received the benefit of the bargain.”
On Dec. 12, Karas ordered Regency to pay $114,936 that remained unsatisfied from his 2022 partial decision for Townsquare; $694,328 on the contracts he reconsidered, and $344,833 in interest, for a total of $1,154,097.
