WPP’s war over the George Patterson sale ends with apology from Heraghty and McGrath

After three years, WPP has ended its reported $10m quest for damages from Pacific Equity Partners over the sale of advertising agency George Patterson.

Part of the deal was the issuing of “an unreserved apology” by former Patts senior executives MD Anthony Heraghty and executive creative director James McGrath. The legal dispute had hinged on the pair’s financial agreement to not leave the agency for at least a year after the sale, and whether that arrangement was disclosed to WPP’s senior management.  

The settlement comes in the same week that the agency – now George Patterson Y&R – celebrates its 75th birthday. Although the terms of the settlement were not disclosed, it has been reported that WPP was seeking $10m in damages.

In an announcement on WPP’s website today, PEP concedes that it had not disclosed the arrangement before selling The Communications Group – which included George Patterson, media agency Zenith and public relations agency PPR – citing advice from its lawfirm that it was unnecessary to do so.