Turner Broadcasting and its agency, Interference, have agreed to pay $2 million to the city of Boston to settle charges related to the botched marketing stunt it held there last week.
Turner and Interference also agreed to offer a public apology.
Massachusetts Attorney General Martha Coakley reached the settlement yesterday with the network and Interference, Inc., the agency hired to execute the campaign for Cartoon Network.
Under the settlement, the companies said they would pay the eight communities affected $1 million. The remaining $1 million in “goodwill funds” will go toward homeland security and other safety programs.
“Last week’s events caused a major disruption in the greater Boston area on many levels—crippling public transportation, causing serious traffic problems, negatively affecting local businesses, and perhaps most significantly, costing Boston and surrounding communities thousands of dollars,” Coakley said in a statement. “It is our hope that these funds will cover not only the expenses incurred by the many agencies who participated in the response and investigation of the devices discovered in the Boston area last Wednesday, but they will also enable our communities to enhance homeland security, or to pursue other important community initiatives.”
In resolving the issue, the state said it would not pursue civil or criminal charges against Turner or New York-based Interference. Meanwhile, state prosecutors are holding discussions with lawyers representing the two men charged for their roles in the incident to resolve the charges before a trial.
The men, Peter Berdovsky, 27, of Arlington, MA, and Sean Stevens, 28, of Charlestown, MA, were charged last week with one count each of placing a hoax device and disorderly conduct. Both men were released last Thursday on $2,500 bonds after pleading not guilty and are due back in court on March 7.
The campaign was launched to promote the Cartoon Network show Aqua Teen Hunger Force. The stunt included placing several small, electric signs in 10 cities last month. The agency selected the locations to place the boards, Turner said.
The blinking 12-by-14-inch boards had wires, batteries and magnets protruding from them. It featured a character from the adult cartoon raising its middle finger. Those components made them look like bombs, triggering calls to Boston police, city officials said.
Turner and Interference also released a public statement Monday accepting full responsibility for the stunt.
“We acknowledge our responsibility for the unconventional marketing tactic that we authorized, and apologize to the citizens of greater Boston area for any hardship they encountered this week,” the statement said. “We understand now that in today’s post Sept. 11 environment, it was reasonable and appropriate for citizens and law enforcement officials to take any perceived threat posed by our light boards very seriously and to respond as they did.”
In a statement Friday, Interference CEO Sam Ewen apologized for the second time for the mayhem.
The statement discounted claims made in a report by the Boston Globe on Friday that an Interference executive had told Berdovsky to “remain silent,” even as police shut down highways in Boston.
“At no time, and in no way, did we ever seek to hide our involvement in this situation or ask or direct others to do so,” Ewen said. “Additionally, in no way did we delay our response to the situation. Any statement to that end is completely false. On the contrary, we contacted the authorities immediately in order to rectify this unfortunate situation.”
Last week, Interference hired New York public relations firm Ken Sunshine Consultants Inc. to handle the onslaught of media calls following the problems in Boston.
Interference reps erected 400 light boards in 10 cities, including Boston, New York, Chicago, Los Angeles, Atlanta, Seattle, Portland, OR, Austin, TX, San Francisco and Philadelphia. No other incidents have been reported in the other markets, Turner said.
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