Interpublic has initiated legal proceedings for the violation of contractual and fiduciary duties against Frank Lowe. 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."