Hollywood PR Legal Brawl Erupts as Mega Firm R&CPMK Sues Defectors

A legal fight has broken out between rival publicity firms, with marketing powerhouse R&CPMK accusing newcomer 2PM Sharp of poaching employees, clients and confidential information.

R&CPMK, in dual lawsuits filed on Wednesday in California and New York state courts, claims that the founding partners of 2PM Sharp “orchestrated a mass departure” of employees, who allegedly conspired to funnel the firm’s business toward their new venture. It seeks unspecified damages and a court order blocking 2PM Sharp from soliciting R&CPMK clients for a year, among other things.

“The overarching plan is clear: to jumpstart 2PM Sharp’s new business by theft,” states the complaint, which notes that R&CPMK stands to lose “untold sums in revenues from the loss of client business.”

Hollywood is no stranger to subplots of betrayal. CAA in 2015 sued UTA over the defection of a group of comedy agents, calling the surprise exit of several employees as a “lawless midnight raid.” Earlier this year, CAA filed a lawsuit against Range for allegedly stealing confidential information to poach clients.

Rogers & Cowan/PMK represents more than 400 prominent musicians, actors, producers, directors, content creators and athletes, including Denzel Washington, Sandra Bullock, Michael B. Jordan, Brie Larson, Olivia Wilde, Jamie Foxx, Katy Perry, Glenn Close, Emma Thompson, Jerry Bruckheimer, John David Washington, Keanu Reeves, Kate Hudson, Miles Teller, Ansel Elgort, and Kevin Costner. It was formed in 2019 as a result of the marriage between sister firms PMK*BNC and Rogers & Cowan, with Cindi Berger as chairman.

In a blow to the company earlier this year, former chief executive Mark Owens, who’s named in the complaint, exited to start 2PM Sharp. Several others, including copresidents of talent Jeff Raymond and Lindsay Galin, joined in the endeavor.

The lawsuit details some of the departing employees’ conduct in the days before their resignations from R&CPMK. It claims that Owen began efforts to divert business and employees to 2PM Sharp in late 2023, starting with Raymond and Galin. He received his termination notice in January for reasons not disclosed in the complaint, with his last day in March. He registered a domain name for 2PM Sharp in May and formed the company less than two months later.

Across three days starting in October, 13 employees simultaneously resigned, the lawsuit says. In the midst of the exodus, R&CPMK began receiving notices from clients, who were serviced by the departing workers, that they’d be terminating their contracts with the firm. One employee allegedly sent an email to Owens of a list of clients she’d be taking with her.

Prior to his resignation, Raymond allegedly downloaded more than 11,000 internal company files on top of the 5,000 that other ex-workers allegedly stole on their way out, according to the complaint.

The allegedly stolen information relates to bid proposals, research and development into new technologies, sales and growth strategies, compensation, media points of contact and project opportunities and trends, among other things. R&CPMK says that 2PM Sharp, which didn’t respond to a request for comment, now effectively has a “playbook” on how to approach and serve clients that can be leveraged to usurp business from the firm.

“Owens encouraged the former employees to solicit their colleagues and clients with disregard for the contractual and other legal obligations,” states the complaint.

As part of their employment with R&CPMK, the departing employees all signed nondisclosure agreements and competition agreements, which are now being breached, the lawsuit claims. The offer letter, for example, bars workers from soliciting current workers or performing services for clients of the firm for a year upon termination.

R&CPMK brings claims for breach of contract, breach of fiduciary duty, tortious interference, unfair competition, and unjust enrichment, among several others.