Omnicom Added As Defendant In Flywheel 'Trade Secrets' Suit

Omnicom Group has been added as a defendant in an ongoing trade secrets lawsuit filed against Flywheel Digital, the digital commerce agency it acquired from Ascential plc a year ago.

"Despite Omnicom having actual or constructive knowledge that it acquired Compass’s stolen trade secrets and confidential information through its acquisition of Flywheel, Omnicom continues to leverage such misappropriated trade secrets and confidential information as of the date of this filing," plaintiff Compass Marketing alleged in an amended complaint filed last week with the Circuit Court of Maryland for Anne Arundel County, which also boosted its assessment of damages to more than $24 billion.

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Among other things, the amended complaint asserts Omnicom leveraged Flywheel Digital's trade secrets to win Amazon's massive media account late last year.

"We knew connecting marketing to sales would be a game-changer for our company and our clients, leveraging and connecting the capabilities of Omnicom Media Group and Flywheel," Omnicom CEO John Wren told Australia's AdNews in October, which is cited as part of the amended complaint, which was set to be served to Wren at Omnicom's corporate headquarters in New York City.

Omnicom declined to comment on being named a defendant in the amended complaint, but the company signaled it might "incur a liability" when it disclosed plans to acquire Flywheel Digital, including the fact that it has obtained a “buy-side warranty” and indemnity insurance protecting it from potential liabilities associated with the purchase.

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