A Pattern Repeats Itself: WPP Sues Former Cohn & Wolfe Execs

(MoneyWatch)  Add Cohn & Wolfe to the list of WPP (WPPGY)-owned companies that is suing its former management. Former C&W healthcare directors Fiona McMillan and Rebecca Galbraith left the agency last year and were then accused of "gross misconduct" by WPP, according to PRWeek. They deny the claim.

It's just the latest suit in which Martin Sorrell's ad agency holding company has filed papers against current or former managers. Among the recent and ongoing litigation:

• WPP forced an apology and ?£750,000 out of three former managers of RKCR/Y&R last year, after alleging they violated their terms of leave after they set up a competing agency.
• In the acquisition of George Patterson Y&R, a case which WPP won for $10 million AUD, WPP sued the former managers of the shop for misrepresenting their compensation agreements.
• With Spot Runner, WPP failed to prove that the TV buyer's managers made deceptive stock sales.
• In the mysterious Goldfarb Consultants suit, WPP unit Millward Brown bought the Canadian shop and then sued the owner for C$110 million (the case settled for C$12 million).
• The reverse situation occurred after WPP's Grey Group acquired Texas' Crossmark ?€" there, the former management sued WPP. That case was settled.
• Still being litigated is the Current Medical Directions suit, where WPP claims former CEO Daniel Salamone presented fraudulent estimates of the shop's revenues WPP bought the shop for $18 million plus $47 million in contingency payments, and tucked it into its Sudler & Hennessey unit.

What are we to make of these actions? They don't seem to be a big feature of management life at Interpublic (IPG), Omnicom (OMC) or Publicis (PUB). Just a suggestion: If WPP acquires your shop, don't celebrate. Bank the fees in an interest-bearing escrow account. You'll need them to pay your attorney later.

• Related:
• WPP: Some Rank Speculation on Who Will Succeed Martin Sorrell as CEO
• WPP's Sorrell Admits Acquisition Due Diligence "Probably Not" Good Enough
• WPP Awaits Ruling in CMD Case; Is There a Pattern Here?