A legal battle has erupted between rival advertising companies, with marketing giant R&CPMK accusing new entrant 2PM Sharp of poaching employees, customers and confidential information.
R&CPMK alleges in a dual lawsuit filed Wednesday in California and New York state courts that 2PM Sharp’s founding partners “orchestrated mass resignations” of employees and attempted to focus the company’s business on new ventures. He claims he was a co-conspirator. Among other things, it seeks unspecified damages and a court order restraining 2PM Sharp from soliciting R&CPMK customers for one year.
“The overarching plan is clear: to fuel 2PM Sharp’s new business through theft,” the complaint states, adding that R&CPMK will “receive incalculable revenue from lost customer business.” It is pointed out that there is a risk of losing the
Hollywood is no stranger to betrayal subplots. CAA sued UTA in 2015 over the defection of a group of comedy agents, calling the sudden departure of several employees a “lawless midnight raid.” CAA sued Range earlier this year for allegedly stealing confidential information to poach customers.
Rodgers & Cowan/PMK represents more than 400 prominent musicians, actors, producers, directors, content creators, and athletes, including Denzel Washington, Elton John, the Rolling Stones, Jerry Bruckheimer, and Rosie O’Donnell. It was established in 2019 as a result of the marriage of sister company PMK*BNC and Rogers & Cowan, with Cindy Berger as Chairman.
Former CEO Mark Owens, named in the complaint, was fired earlier this year and went on to found 2PM Sharp, according to the complaint. Several people participated in the effort, including co-presidents of talent Jeff Raymond and Lindsay Gaylin.
The lawsuit details some of the actions of the retired employee in the days before he left R&CPMK. Mr. Owen claims that in late 2023, he began an effort to transform the business and employees into 2PM Sharp, starting with Mr. Raymond and Mr. Gaylin. He received a notice of termination in January for reasons not disclosed in the complaint, and his final day of termination was in March. He registered the 2PM Sharp domain name in May and founded the company less than two months later.
According to the complaint, 13 employees simultaneously resigned over a three-day period starting in October. Amid the employee exodus, R&CPMK began receiving notices from customers served by departing employees who were terminating their contracts with the company. One employee allegedly emailed Owens a list of customers to take with him.
Before leaving the company, Raymond allegedly downloaded more than 11,000 company files, in addition to 5,000 that other former employees allegedly stole upon leaving the company, according to the complaint.
The information allegedly stolen relates to bid proposals, research and development of new technologies, sales and growth strategies, compensation, media contacts, project opportunities and trends, etc. R&CPMK did not respond to a request for comment, but said 2PM Sharp now effectively has a “strategy” on how to approach and service customers that it can use to steal business from the company. When asked for comment, R&CPMK president Cindy Berger said, “We do not comment on pending litigation.”
“Owens encouraged former employees to solicit co-workers and customers in disregard of contractual and other legal obligations,” the complaint states.
As part of their employment with R&CPMK, all of the departed employees signed non-disclosure agreements and competition agreements, which are now being violated, the lawsuit alleges. For example, a job offer letter prohibits an employee from soliciting current employees or providing services for the company’s clients for one year after termination.
R&CPMK has filed claims for breach of contract, breach of fiduciary duty, tortious interference, unfair competition, and unjust enrichment.
