EXCLUSIVE: “Range I wasn’t looking for this fight,” insists the unceremonious pre-holiday counter-complaint to SAA filed Monday evening in Los Angeles Superior Court. Pete Micelli– founded company. “Yet, CAA’s ongoing misconduct, California law and basic fairness leave him no choice but to fight back.”
Yes, and Happy Thanksgiving to you too.
A year and almost two months after Brian Lourd-the launch of the GAA took so-called “illegal” measures Range Media Partners open court for poaching personnel, talents and information to create it in 2020, In addition to ostensibly being an agency masquerading as a management enterprise, the Rebel Alliance of sorts takes a swipe at the Death Star – with some of the same language being used against it.
“CAA waged a deliberate and unlawful campaign to stifle Range’s growth by using illegal non-compete agreements as a weapon to intimidate and punish employees who were considering joining Range,” the countercomplaint alleges violations of unfair competition and tortious interference laws. “This behavior is not only vindictive; “It is a direct attack on employee mobility and fair competition—the very same public policy that California’s century-old non-compete ban was enacted to protect.”
Today's jury trial lawsuit from attorneys Range Gibson, Dunn and Crutcher is starting to pull out its big blades.
“Fully aware that such non-compete clauses are invalid, CAA enforces them anyway, threatening employees with the loss of their hard-earned capital if they even consider moving to Range on their own: Agents who leave for other management companies retain every dollar of their share capital; only potential Range employees are exposed to this threat,” said the 15-page proposal by Ilysa Samplin, Orin Snyder, Gillian London and Daniel Nowitzki.
“This is not the behavior of a respected industry leader, but that of a company abusing its power and clinging to control it no longer legally has. After years of escalating retaliation, Range is filing a countercomplaint because CAA's bullying and flagrant violations of California law must finally end.”
Quite rude, but you understand why.
A number of executives here are already involved in a closed arbitration initiated in 2022 by former CAA employees and current Range gang David Bugliari, Michael Cooper, Michael Sullivan and Jack Whigham More than “tens of millions of dollars in assets owned by former agents” were apparently denied by the CAA to the quartet during the pandemic. Add to this the breach of fiduciary duty on September 30, 2024 and a claim for tortious interference. from the Avenue of Stars-based uber agency and its lawyers Paul Hastings, and it's no surprise that things quickly got worse and then bloodier.
For months, former agency colleagues beat each other up, and CAA told stories of some kind of secret moles in action. oops, caught you on camera and other claims of concealment of illegal conduct, theft of talent, with Range's hopes for dismissal due to coincidence with arbitration. To this judge Mark Young in August denied most of CAA's allegations. Since then, when the judge granted CAA the right to go one step further and file a new petition, there have been amended complaints, protective orders and, in just the last day, a smorgasbord of lawsuits.
Also worth noting is the fact that Range and CAA work closely together.
As both companies have repeatedly emphasized during this public lawsuit and arbitration proceeding, the two companies have approximately 150 common customers, including Michael ShannonLuca Gudagnino, Emilia ClarkeStefan James, Shailey Woodley, Kingdom, Josh Gad, Shabuzi and Dan Levy.
However, even though this all seems very personal, regardless of your point of view, Range and his lawyers want to talk turkey.
Drew Angerer/AFP via Getty Images
First, the motion filed Monday, seeking injunctive relief and more than $1 million in damages, claims that “media reports” say the lopsided JAMS arbitration has already gone in Range's favor and the CAA side has “failed.” To this, they argue that “the arbitrators have already ruled as a matter of law that the CAA waiver is void and illegal.”
While non-competitive practices are still legal in places like New York State, albeit to a lesser extent than just a few years ago, they have long been prohibited on the West Coast, where CAA and Range are headquartered. So, regardless of where the confidential (but much leaked) arbitration between CAA and Band Four actually takes place, and what decision was or was not made, there are some valid non-compete laws on the books.
To reinforce this point, as some employers still struggle to include these provisions in contracts and agreements or attempt to formalize a contract in another jurisdiction, Golden State law hit the stop button a few years ago—along with the allure of potential “damages, injunctive relief, and reasonable attorneys' fees.” (Sound familiar?)
“Effective January 1, 2024, Senate Bill (SB) 699 will generally prohibit employers from entering into non-compete agreements with California workers,” said California Attorney General and possible 2026 gubernatorial candidate Rob Bonta. in October 2024. “This applies to agreements executed both in and outside of California. Employers who enter into or attempt to enforce invalid agreements will be committing a civil violation.”
Of course, like so many things in this business, it all comes down to personalities and perspective. To that end, Range and their defense and now offense team saved what might be the best spoiled meat for last.
“Range recently learned that one CAA agent left CAA to join another management company (and retained his capital) because CAA threatened to revoke his capital if he joined Range,” today's filing alleges.
“After a Range employee asked the former agent why he did not come to Range as a manager, the former agent said that CAA threatened to revoke his equity if he did so,” the document further states. “These unlawful threats caused real harm to Range. If not for CAA's intimidation and threats to revoke these CAA agents' interests, these agents-turned-managers would have joined Range, bringing with them their experience, clients and income.”
Long claim and short counterclaim: give us our money.
CAA did not respond to Deadline's request for comment on the counterclaim ahead of publication. If and when they do, we will update this article.
