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legal Conflict Erupts Between Rival Publicity Firms

A significant legal battle has emerged between competing publicity firms, with the renowned marketing powerhouse R&CPMK accusing the newer firm, 2PM Sharp, of engaging in unethical practices such as poaching employees, securing clients away from R&CPMK, and misappropriating confidential information.

Allegations of Employee Poaching and Client Misappropriation

R&CPMK has initiated legal action through dual lawsuits filed on Wednesday in both California and New York state courts. The firm asserts that the founding partners of 2PM Sharp have orchestrated a “mass departure” of staff members who allegedly worked together to redirect business from R&CPMK to their new enterprise. The lawsuits seek unspecified damages along with a court order that would prevent 2PM Sharp from soliciting clients from R&CPMK for a duration of one year, along with several other demands.

Concerns Over Theft and Revenue Loss

The complaint explicitly outlines what R&CPMK perceives as a clear and overarching scheme designed to jumpstart 2PM Sharp’s business through illicit means. According to R&CPMK, the firm stands to incur significant financial losses due to the attrition of its clientele, which would be detrimental to its overall revenues.

Precedents of Betrayal in the Publicity Industry

Hollywood has witnessed numerous cases of betrayal and corporate espionage in the past. A notorious instance includes CAA’s 2015 lawsuit against UTA regarding the sudden departure of a team of comedy agents, which was characterized as a “lawless midnight raid.” This year, CAA filed another lawsuit against Range, alleging the theft of confidential information to attract clients away from them.

R&CPMK’s Notable Clientele and Firm History

Rogers & Cowan/PMK boasts a roster of more than 400 high-profile clients, including notable figures such as Denzel Washington, Elton John, the Rolling Stones, Jerry Bruckheimer, and Rosie O’Donnell. The firm was established in 2019 through the merger of sister firms PMK*BNC and Rogers & Cowan, with Cindi Berger serving as the chairman.

Integrating Former Executives and the Formation of 2PM Sharp

The lawsuit indicates that Mark Owens, who is named in the legal action, was dismissed earlier this year before launching 2PM Sharp shortly thereafter. Multiple individuals, including co-presidents of talent, Jeff Raymond and Lindsay Galin, also left R&CPMK to join him in this new venture.

Implications of Conduct Before Resignation

The legal documents detail the conduct of several departing employees before their resignations from R&CPMK. They claim that Owens initiated efforts to steer both employees and business towards 2PM Sharp as early as late 2023, starting with the recruitment of Raymond and Galin. Owens received a termination notice in January, with the specific reasons undisclosed in the complaint. He officially left the firm in March after registering a domain name for 2PM Sharp in May and launching the company less than two months later.

A Sudden Mass Resignation

Within the span of three days in October, a troubling total of 13 employees resigned from R&CPMK simultaneously, as per the lawsuit. During this tumultuous transition, R&CPMK began receiving notifications from clients serviced by these departing workers that they would be terminating contracts with the firm. Alarmingly, it was reported that one employee sent Owens an email listing clients they intended to take along with them.

Allegations of Data Theft

The complaint further alleges that Raymond improperly downloaded over 11,000 internal company files while other exiting employees allegedly made off with an additional 5,000 files as they departed.

The Nature of the Stolen Information

The information that R&CPMK alleges to have been stolen includes sensitive data related to bid proposals, research and development efforts concerning new technologies, sales and growth strategies, compensation details, as well as critical media and project-related information. R&CPMK argues that 2PM Sharp now possesses an unfair “playbook” for conducting business with clients, equipping them to unjustly gain a competitive advantage within the industry. In response to media inquiries about the allegations, R&CPMK chairman Cindi Berger declined to comment on the ongoing litigation.

Breach of legal Agreements

The complaint alleges that Owens actively encouraged the departing employees to solicit their colleagues and clientele while ignoring their legal obligations as outlined in their contracts. Each departing employee had previously signed nondisclosure and non-compete agreements that, according to the lawsuit, are now being violated. For instance, the employment contracts prohibit former employees from soliciting current staff or servicing clients of R&CPMK for a year following their departure.

legal Claims Launched by R&CPMK

R&CPMK is pursuing multiple claims, which include breach of contract, breach of fiduciary duty, tortious interference, unfair competition, and unjust enrichment, among other allegations.

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