CAA Loses Arbitration Over Equity Payouts for Ex-Employees Who Founded Range

CAA has lost a legal battle over the high-profile exits of former employees Jack Whigham,Dave Bugliari,Michael Cooper andMick Sullivan, all of whom left the agency to start management firm Range Media Partners, a source familiar with the situation confirms to The Hollywood Reporter.

An arbitrator sided with the Range founders, who initiated the proceedings after their equity was cancelled in the wake of their departures, on claims for breach of contract and breach of fiduciary duty, the source says. With the ruling, they potentially stand to collect tens of millions of dollars, depending on the valuation of the majority stake in the agency acquired by François-Henri Pinault in 2023.

At the same time, the arbitrator rejected CAA’s counterclaims for breach of the duty of loyalty and breach of contract stemming from what it alleged was the former employees’ improper conduct leading up to and after their exits. CAA had claimed the Range founders stole trade secrets and started a rival agency that masquerades as a management firm — also the subject of a lawsuit filed by the agency.

The decision is a major win for Range, and the management firm will look to leverage it in ongoing litigation. The ruling, which rejected allegations that the former CAA employees stole trade secrets, the source says, undermines some of the central claims in the agency’s case.

“If the Range Founders did not breach their fiduciary duties to CAA or misappropriate confidential or trade secret information, then Range cannot be held liable for aiding and abetting or causing that conduct,” wrote Judge Mark Young in an order issued last year.

CAA, which declined to comment, is expected to appeal the decision, first reported by Puck.

The arbitration has erupted into a full-blown legal war between CAA and Range, which was represented by Bryan Freedman. In 2024, after the arbitration was initiated, CAA sued Range, accusing it of illegally operating as a rival agency, stealing trade secrets and soliciting clients. The management firm later filed counterclaims against CAA over its use of noncompetes.

In the cross complaint, Range nodded to the arbitration, “The panel reportedly confirmed what the law has always said: CAA’s restrictive noncompetes are void” under California law. “And yet, CAA has tried to enforce them anyway.”

The two sides will meet in court next week to schedule a trial. Range declined to comment.