6:19pm PT by Matthew Belloni
Management Firm Industry Entertainment Sued for Alleged Client-Stealing
One of Hollywood's top management companies has been sued by a rival for allegedly stealing clients that were under contract and spreading negative rumors that contributed to the closing of its management division.
New Wave Entertainment, a Burbank-based management and production firm, sued Industry Entertainment and manager Paul Brown on Friday in Los Angeles Superior Court claiming Brown left New Wave for Industry in January and improperly took clients and confidential information with him. Specifically, Brown is alleged to have convinced Orange Is the New Black star Laura Prepon and Casual actor Tommy Dewey, among others, to break contracts and join him at Industry.
Movements and poaching are common in the talent representation world, but New Wave claims Brown and Industry "interfered with the contractual relationship that existed between Plaintiff and its clients, diverted contractually-owed commission payments away from Plaintiff and to Brown and or [Industry], and worked to have Plaintiff's clients end their contractual relationships with Plaintiff and form contractual relationships with [Industry] and/or Brown," the complaint alleges.
The company also claims Brown tried to lure away New Wave employees and spread negative rumors about the company within the Hollywood community. "As a result of the conduct of the Defendants, Plaintiff has been damaged by loss of revenue, reputation, employees, and by having to close down the talent management aspect of its business," the lawsuit alleges.
Damages are not specified. THR has reached out to Industry for comment and will update with a response.
The seven-count complaint, filed by attorney J. Chris Sweeney of Kauff McGuire & Margolis, alleges causes of action for breach of fiduciary duty, tortious interference with contractual relations, intentional interference with prospective economic advantage, conversion, unjust enrichment, misappropriation of trade secrets and violation of the state business and professions code.