Posted November 10, 2008 8:49 am by with 9 comments

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As I wait at RDU airport in Raleigh, NC to get to Vegas for PubCon (a lot more from me this week on that), I was reading the, surprise, Wall Street Journal. It appears that interactive agencies are now really in the big time because today’s news isn’t about search marketing or interactive ingenuity by rivals iCrossing and No, it’s about a lawsuit. Congratulations interactive agencies, you have arrived. No longer do you sit on the fringes while people wonder what it is you do that other advertising agencies can’t (or maybe won’t) do. You are now in the business of having your dirty laundry aired for all of us to gawk at. Well struck!

Well, here’s what happened. LLC is suing iCrossing because it took several top executives and a few big clients just happened to follow in one of those rare coincidences in business (wink, wink, nod, nod). The formal suit which was filed in Dallas alleges breach of contract, conspiring to misappropriate proprietary information and trade secrets and, this is the best one, tortuous interference. What the heck are these folks doing? Water boarding for clients?! I think they changed their address to Guantanamo Bay.

Anyway, the gist of this deal is as follows. Donald Scales is the CEO of iCrossing. Previously he was the CEO of When he jumped ships he apparently was tethered to some key folks and may have overlooked little contractual details like non-solicitation of employees during a certain time period. Bottom line is that closed its Dallas office as a result and its Chicago office got hit hard too. This information came from depositions for Mr. Scales and several other iCrossing employees. Looks like Mr. Scales is pending some time under buses these days.

Then there’s the little detail of an employee, Marlin Jackson, helping iCrossing get some business from Marriott / Ritz Carlton during the final month of his employment with Agency which he then left for, you guessed it, iCrossing.

First of all, if this is true then the ethics of the interactive agency world have reached Madison Avenue lows at a record pace. We know that in this day and age it’s harder and harder to find someone who will keep their word. We are all a little sick of promises these days and apparently with good reason since many have no intention of keeping them.

Interesting point for you search and interactive marketers out there is the following:

The suit exemplifies the concern in the ad business about a lack of digital-minded talent. The short of this expertise continues to be an issue for many agencies as they seek to retain ad dollars, which are increasingly moving from traditional advertising to digital media.

So get those resumes updated and sharpen the negotiating skills. Apparently they may need you more than you need them. That’s a nice position to be in these days. Oh and don’t let them off the hook. Make them pay for you. After all, there will most likely be lawsuits that need tending to!

  • There always is two sides to a story, and that is why we have courts of law and are judged by a jury made up of our peers. Both companies are getting loads of link love from this public cat-fight, so maybe airing the laundry in cyberspace will bring in some fresh business?

  • Looks like even SEO is getting insestuos. I thought it was just the finance industry was like that. Poaching staf, and stealing client books has happened for years, and will continue for many more years.

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  • sounds like something out of a legal drama or something.. Personally I can’t stand it when people behave thus

  • Didn’t really understand what you meant by that Money savings?

  • tortuous interference? funny stuff

    Internet Entrepreneur’s last blog post..Severe Twitterdation

  • It seems to me that something really illegal takes place. I think such behavior is out of rules. Who can bear it?

  • kevin

    They went from being a great shop to joke since Herzog left and Scaled took over.

    Rumor has it this little media blip has also caused a rift among investors and affected the pipeline leading to iCrossing axing 40 jobs. Many of the employees had been there for over 4 years.

    Meanwhile Don Scales still owns his 6 homes and an iCrossing paid for NYC apartment.

    Justice has yet to be served

  • PS3

    I understood Money Saving’s comments. He is right, once someone has knowledge, contacts, relationships, IPR etc, they don’t just forget about it because of a contract.

    Getting caught is the bit to avoid though 🙂

  • Woof Woof

    I enjoyed my time at iC and have respected Herzog, but i never trusted Scales. That POS ruined one company and now he is at it again. It is good to see his former company sue for damages. It is saddening that they keep laying people off, but isn’t it funny that it is never any of the Agency VP’s, oops, I mean iC VP’s that never get axed. Good luck to those who are left.