NEW YORK: In an outbreak of peace, Interpublic Group and its former main board director Sir Frank Lowe have put twelve months of litigious wrangling behind them in favor of a less costly zero-damages settlement.
The spat was sparked in December 2005 [WARC News: 05-Dec-05] when Lowe re-entered the agency business with the opening of a new independent shop, The Red Brick Road. By the end of January 2006 the startup had collared the $80 million (€61.7m; £40.5m) Tesco account at the expense of IPG's Lowe London office.
IPG promptly filed a claim with the American Arbitration Association accusing Lowe of using privileged information to destabilize Lowe London and IPG.
Lowe denied the allegation and reciprocated with a civil lawsuit in the New York Supreme Court accusing IPG of defamation via "false and injurious statements" in the arbitration claim and a related press release.
This week's settlement sees both sides dropping their claims.
Data sourced from AdWeek (USA); additional content by WARC staff