Interpublic Initiates Proceedings against Sir Frank Lowe
NEW YORK--(BUSINESS WIRE)--Jan. 13, 2006-- The Interpublic Group (NYSE: IPG) disclosed today that it has initiated proceedings against Frank Lowe, the former head of its Lowe Worldwide agency network, for violation of contractual and fiduciary duties arising from his tenure as the head of its Lowe Worldwide agency network. The company's claim states that, using confidential and proprietary information related to clients and agency personnel that was garnered as a result of his employment by Lowe Worldwide, Mr. Lowe has begun a campaign to induce such executives and clients to leave the Lowe agency and join a rival firm which he is in the process of establishing. Interpublic will pursue its claims before the American Arbitration Association in the state of New York.
Commenting on its claim, Interpublic indicated: "Frank Lowe sold his agency to Interpublic in 1990 for tens of millions of dollars and subsequently received many times that amount in financial support and resources to build a global network, recruit and compensate key talent. Our claim states that, in breach of his continuing fiduciary responsibilities, he has chosen to use contacts and proprietary knowledge to damage Lowe and Interpublic. We will be asking the panel for monetary compensation and injunctive action. We also intend to hold any Lowe employee seeking to join Mr. Lowe to their full notice period."
Interpublic is one of the world's leading organizations of advertising agencies and marketing-services companies. Major global brands include Draft, Foote Cone & Belding Worldwide, FutureBrand, GolinHarris International, Initiative, Jack Morton Worldwide, Lowe Worldwide, MAGNA Global, McCann Erickson, Octagon, Universal McCann and Weber Shandwick. Leading domestic brands include Campbell-Ewald, Deutsch and Hill Holliday.
CONTACT: Interpublic Group
Julie Tu, 212-827-3776
Media, Analysts, Investors:
Philippe Krakowsky, 212-704-1328
Jerry Leshne, 212-704-1439
SOURCE: Interpublic Group