• by January 16, 2006

The Interpublic Group of Cos. is accusing Frank Lowe, the former head of its Lowe Worldwide agency network, of using confidential information and violating agreements with the company in connection with his founding of a new startup ad agency in London.

In a statement, the holding company said Lowe used "confidential and proprietary information related to clients and agency personnel that was garnered as a result of his employment by Lowe Worldwide ... to induce such executives and clients to leave the Lowe agency and join a rival firm which he is in the process of establishing."

Lowe has already lured at least one executive from his former agency, and also walked away with the shop's $85 million Tesco supermarket chain account. IPG filed its complaint with the American Arbitration Association in New York.

Interpublic also accused Lowe of violating "contractual and fiduciary duties arising from his tenure at the head of its Lowe Worldwide agency network," and said that he "has chosen to use contacts and proprietary knowledge to damage Lowe and Interpublic." IPG said it will seek monetary compensation and injunctive action against Lowe.

There was speculation that Lowe would name a second client in the coming days, and that another executive at Lowe London--Executive Creative Director Ed Morris--might join the new agency. So far, Lowe has recruited former Lowe London Chairman Paul Weinberger and ex-DDB London CEO Paul Hammersley as partners.

The new agency has yet to be officially named.