Lowe Hunt ordered to pay $300,000 after boss misled staff about financial situation

Advertising agency Lowe Hunt must pay $300,000 in compensation after the Federal Court found that former boss Ben Colman misled a member of staff into joining the Sydney-based agency by claiming it was in a good financial position when it was actually technically insolvent.

This week the Federal Court ruled in favour of Andrew Moss, who gave up working for his consultancy Pegasus Planning based on the claims made by Colman, who is now a partner in Colman Rasic.

In her judgement on Moss versus Lowe Hunt & Partners, The Hon Justice Katzmann described Colman as “an unimpressive witness, who presented as one who was inclined to say what he thought at the time might help him or the case he had been called to support. It was difficult to know when he was telling the truth. Where his evidence is in conflict with that of Mr Moss, I prefer the evidence of Mr Moss.”

She also said of Colman: “He was given to overstatement. He conceded he had made a number of misleading statements in significant documents and he was quick to shift responsibility to others. At one point in cross-examination he admitted to making a false statement to prospective clients in Mr Moss’s presence because he perceived it to be in his employer’s interests.”

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