Home » Business » MPRM Lawsuit Accuses 42West of Orchestrating Hostile Takeover

MPRM Lawsuit Accuses 42West of Orchestrating Hostile Takeover

by Priya Shah – Business Editor

MPRM files suit Against 42West, Alleging Coordinated Employee and Client Poaching

LOS ANGELES, November 17, 2023 – Public relations ⁣firm MPRM has filed a lawsuit against rival agency 42West, accusing it of orchestrating‍ a “hostile departure” ​of key personnel and the subsequent ⁤loss of major⁤ clients. The suit, filed Friday in California state court, alleges 42West engaged in‌ a deliberate effort to dismantle MPRM by poaching employees, clients, and confidential information.

The legal action follows the abrupt exit of ⁤roughly half of MPRM’s staff last week, including executive vice presidents Sylvia desrochers ‌and Caitlin McGee. Desrochers and McGee had been ‍in negotiations to purchase MPRM from president Mark‌ Pogachefsky, ​a transition initiated after the 2022 retirement of cofounder rachel McCallister. Those plans dissolved earlier this year when Pogachefsky received a purchase offer⁣ from the pair, reportedly valued‌ at less than 10⁤ percent of the company.

According to the lawsuit, Desrochers informed Pogachefsky on Wednesday⁤ that she was taking several high-profile clients – including ‌Disney, National Geographic, ⁢and NBC ⁢- to ⁤42West. MPRM alleges this was part‍ of a pre-planned effort to cripple the firm.‍

The complaint details accusations of trade secret theft, including marketing plans,​ client lists with contact information, and detailed customer profiles outlining‌ service needs and preferences. “It was apparent that their ⁤leaving MPRM was hostile, had been‌ in the works for quite some time, ⁣and ‍would wreak‍ havoc ⁢on MPRM and its existing clients ​by depriving it of​ key personnel,” stated Devin McRae, MPRM’s lawyer, in the complaint.

MPRM is​ seeking unspecified damages and alleging breach of fiduciary duty, misappropriation of trade‌ secrets, and fraudulent concealment. 42West, which‌ boasts a​ client roster including Martin Scorsese, Tom Hanks, and Tom ‍Cruise,⁤ and recently celebrated the success of its ​marketing campaign ​for ⁢sony’s Demon Slayer: Infinity Castle (grossing $555 million globally), declined to comment.

The lawsuit echoes similar⁢ allegations made last year when marketing firm R&CPMK sued 2PM Sharp, accusing it of employing a similar strategy of mass employee departures and client poaching⁤ to build its business.

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