Publicity Wars: R&CPMK Accuses Ex-CEO of Stealing Clients and Employees to Launch Rival Firm

As a grizzled veteran of the Hollywood scene, having navigated the treacherous waters of Tinseltown for decades, I must say that this saga between R&CPMK and Mark Owens is as predictable as a sequel to a tired franchise. The partnership, built on the promise of grandeur and success, has crumbled under the weight of ambition and deceit.


Some partnerships are not built to last.

Back in 2019, Cindi Berger and Mark Owens combined the two biggest public relations companies in Hollywood, PMK*BNC and Rogers & Cowan, to create a massive marketing powerhouse. Berger was named the chairman while Owens became the CEO of this new entity.

Since then, I’ve found myself out of a job, and the merged company, now called R&CPMK, has levied accusations against me. They claim that I allegedly poached employees, clients, and confidential information to establish 2pm Sharp, a competing PR firm.

In legal actions brought forth in New York yesterday evening and Los Angeles this morning, the firm R&CPMK alleges that Owens orchestrated a stealthy employee departure. Lindsay Galin and Jeff Raymond, who hold the co-presidential position for talent, were the first to depart on October 1st, with another 11 individuals following suit over the subsequent two days.

The lawsuits claim that the defecting employees breached their duty of loyalty to R&CPMK, which stands to lose “untold revenues from the loss of client business.” R&CPMK must now work to restore the morale of its remaining employees and manage a threat to its reputation as an industry leader, according to the filings.

According to the lawsuit, the behavior of the ex-employees is exceptionally damaging because some of them held high-ranking positions and were aware of the significance of preserving the company’s business connections.

In the year 2015, Owens was appointed as the CEO of Rogers & Cowan following a significant span in marketing and forging collaborations between brands and the entertainment industry. Four years later, his firm and Berger’s merged, with both entities being fully owned by Interpublic Group. The amalgamated company represented over 500 celebrities such as Robert Redford, Denzel Washington, Glenn Close, Katy Perry, and brands like Samsung, McDonald’s, and YouTube.

At that moment, this decision marked a pivotal point for our organization, bringing about substantial benefits and numerous prospects globally for both our company and clients,” stated Owens.

Based on reports, it appears that Owens started considering leaving the company towards the end of 2023. This was indicated when he approached another senior executive about starting a new venture together. It is believed that he may have also approached Galin and Raymond with a similar proposition around the same timeframe.

According to the lawsuit, the company terminated his position as CEO in January, with the termination taking effect on March 1st. The law firm R&CPMK alleges that during this interim period, Owens was still attempting to attract employees for his new business endeavor.

Once he was out the door, Berger took the dual role of chairman and CEO.

In a swift manner, Owens efficiently arranged everything by 2 PM sharp, registering his business as an LLC in Delaware, purchasing a web domain, and formally establishing operations in both California and New York.

Publicity Wars: R&CPMK Accuses Ex-CEO of Stealing Clients and Employees to Launch Rival Firm

During the summer, Owens honored his deceased father on LinkedIn, acknowledging that it was these values his father instilled in him that guided him successfully throughout his professional life.

“The past has much to teach us, and as I embark on a fresh journey, it’s crucial to recall the importance of a good reputation, respect, and strong moral values, especially in these challenging times.

According to R&CPMK, it’s claimed that while Owens was still employed there, he and some of his colleagues were conspiring to steer business towards 2pm Sharp.

According to the lawsuits, it is claimed that Raymond allegedly downloaded around 11,000 company documents on September 20th, which was only a few days before he and approximately a dozen other employees chose to leave the company. Furthermore, other staff members are said to have downloaded an additional 5,000 files in the time period leading up to their respective departures, as stated in the lawsuit.

R&CPMK carefully guards sensitive data about its prominent clients, which include celebrities and Fortune 500 companies. This information is kept hidden since, as the lawsuit alleges, if a rival were to obtain it, they would essentially have a strategy guide for serving each client, potentially taking away business from R&CPMK.

In the midst of resignations, R&CPMK started getting messages from clients stating they were ending their partnerships. The leaving staff are unwilling to inform HR or top management about their next destination, but it was later discovered that they had joined 2pm Sharp, as mentioned in the lawsuit.

On October 2nd, Jessica Sciacchitano, a high-ranking talent executive, sent an email to Owens, Raymond, and others. In this message, she included a list of clients that she intended to transfer to the new company, according to the lawsuit. The email was subsequently deleted, but it was later retrieved by R&CPMK.

2pm Sharp doesn’t directly mention clients by name in their lawsuits, but they’ve shared pictures of celebrities like The Rolling Stones, Jim Gaffigan, Adrien Brody, and John David Washington on their Instagram page.

The lawsuit lists 13 ex-employees among its defendants, with Owens, Raymond, and Sciacchitano being among them.

R&CPMK alleges that some of its employees breached their contracts and the company’s Code of Conduct by attempting to persuade both clients and fellow workers to switch to a direct competitor, which is against the rules. The lawsuits aim to recover confidential information, along with compensatory and punitive damages, and a temporary ban on the former employees from soliciting R&CPMK clients for a year.

“We don’t comment on pending litigation,” Berger said.

Owens and 2pm Sharp did not immediately respond a request for comment.

This year, similar controversies have erupted within the realm of agencies, with CAA filing a lawsuit against Range Media Partners, a management company started by ex-CAA agents in 2020. The lawsuit alleges that these former employees solicited clients from CAA, downloaded confidential data about the company, and used Telegram to evade detection during their questionable activities.

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2024-11-27 19:50