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Former Exec Files $5 Million Lawsuit Against Euro RSCG

Charlie Tarzian Claims Slander and Breach of Contract; Agency Countersues

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NEW YORK (AdAge.com) -- Slander, breach of contract, engaging in unfair business practices and misrepresentation are some of the juicier allegations made in separate complaints filed in New York State Supreme Court by Charlie Tarzian, former CEO of Euro RSCG Worldwide's marketing-services unit 4D and his ex-employer.
Former employee Charlie Tarzian and Euro RSCG are suing each other.
Former employee Charlie Tarzian and Euro RSCG are suing each other.

Software program
The employment contract of Mr. Tarzian, and rights to a software program he invented now licensed to Euro and its Circle.com subsidiary, are at issue in a complaint filed May 5.

In his suit, the executive alleges that Euro interfered with prospective business relationships with clients of a new enterprise, Last Mile, he launched in April; misrepresented to prospective clients the terms of his employment and noncompete agreements with Euro and Circle.com; and slandered him, by telling a prospective Last Mile client that he is prohibited from providing services according to the terms of his employment agreement.

Seeks $5 million+
Mr. Tarzian is asking for damages in excess of $5 million. "My complaint speaks for itself," he said. Euro attorney Nancy Wynne calls Mr. Tarzian's suit "without merit." Euro has 20 days to respond.

The agency's suit, filed against Mr. Tarzian and his new company May 9, also in New York State Supreme Court, says Mr. Tarzian orchestrated a scheme to "unlawfully compete" against Circle.com and Euro in violation of the terms of his employment agreement.

Euro's counterclaims
Specifically, Euro's suit says that in violation of his fiduciary duties to Euro, Mr. Tarzian spent "a significant amount of time" while still in his job as 4D CEO developing Last Mile, which Euro characterizes as a competing company. Euro also alleges Mr. Tarzian breached the terms of his employment contract by soliciting Circle.com and Euro employees to join Last Mile.

Another charge is that Mr. Tarzian solicited a key client, IBM Corp., and also engaged in "fraudulent acts" to obtain a commitment from the marketer to move its business to Last Mile once he resigned from Euro.

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