A high-stakes legal battle has erupted between AdCentral cofounders Scott Pierce and Israel Quintal (main pic), with Pierce filing a lawsuit alleging financial misconduct and unjust ousting from the company.
AdCentral is a US-based marketing automation platform tailored for franchses, repair shops and similar small businesses. It is popular with mobile device servce and repair shops.
For example, a repair shop signs up with AdCentral and selectse“iPhone screen repair” as a core service. AdCentral automatically creates and runs local Facebook and Google ads offering same-day screen repair. A local customer with a cracked iPhone screen sees the ad, clicks to book, and visits the shop that day. The system also handles diagnostics, and IMEI checks from a Cloud-based app.
According to court filings, Pierce claims that Quintal diluted his ownership, forced him out, and manipulated company funds—particularly through inflated payments to a related firm, IQ Consulting.
Pierce asserts that AdCentral paid at least $300,000 in excess employee salary costs to IQ Consulting, even for staff working on unrelated clients. Additionally, the company allegedly provided free services to the firm, ultimately benefiting Quintal personally.
Pierce and Quintal co-founded AdCentral around 2020, with Pierce serving as CTO and Quintal as CEO. While no formal operating agreement was established, Pierce argues that various documents, including a draft agreement, a 2021 K-1 tax form, and a vendor questionnaire, demonstrated his equal ownership. However, after a conflict in late 2023, he was stripped of control, fired, and saw his ownership stake plummet to less than five per cent by 2023.
Pierce’s complaint lists 11 legal counts, including breach of contract, conversion of membership interest, breach of fiduciary duty, and statutory conspiracy.
Quintal challenged several of the claims but, Judge David A. Oblon rejected the motion entirely, allowing Pierce’s case to proceed. The court ruled that improperly diverted funds can be recovered from any party who knowingly benefited, making Quintal a legitimate target for financial restitution.
The lawsuit now moves into the discovery phase, where Pierce aims to validate ownership documentation, trace-inflated payments, and prove fiduciary misconduct. If successful, this case could have implications for corporate governance and business ethics in startup environments.
More updates to follow as the legal proceedings unfold.
