EXCLUSIVE: “Range did not seek this fight,” insists an unceremonious pre-holiday counter-complaint against CAA filed tonight by the Pete Micelli founded company in LA Superior Court. “Nevertheless, CAA’s ongoing misconduct, California law, and basic fairness leave it no choice but to fight back.”
Yes, Happy Thanksgiving to you too.
A year and almost two months after the Bryan Lourd-run CAA took the so-called “unlawful” Range Media Partners to open court for poaching staff, talent, and intel for its 2020 creation, as well as allegedly being an agency masquerading as a management venture, the Rebel Alliance of sorts is taking a sharp stab at the Death Star – with some of the same language used against it.
“CAA has orchestrated a deliberate and unlawful campaign to choke off Range’s growth—weaponizing illegal noncompete agreements to intimidate and punish employees who consider joining Range,” claims the violation of unfair competition law and tortious interference cross-complaint. “This conduct is not only vindictive; it is a direct attack on employee mobility and fair competition—the very public policies California’s century-old ban on noncompetes was enacted to protect.”
The jury trial seeking action today from Range’s Gibson, Dunn & Crutcher attorneys then start pulling out their big blades.
“Fully aware that such noncompete provisions are void, CAA wields them anyway, threatening employees with the loss of their hard-earned equity if they even contemplate moving to Range alone: agents who leave for other management companies keep every dollar of their vested equity; only prospective Range hires are targeted with this threat,” the 15-page pre-holiday offering from Ilissa Samplin, Orin Snyder, Jillian London and Daniel Nowicki adds.
“This is not the conduct of an esteemed industry leader, but of a company abusing its power and clinging to control it no longer lawfully possesses. After years of escalating retaliation, Range brings this Cross-Complaint because CAA’s bullying and flagrant violation of California law must finally end.”
Rather blunt, but you kinda get why.
A number of the principals here are already deep in a closed-door arbitration instigated in 2022 by ex-CAAers and current Range gang David Bugliari, Michael Cooper, Michael Sullivan, and Jack Whigham over “tens of millions of dollars of the former agents’ vested equity” CAA apparently denied the quartet back in pandemic times. Add to that, the September 30, 2024 breach of fiduciary duty and tortious interference suit from the Avenue of the Stars-based uber-agency and their Paul Hastings lawyers and it’s no shocker things got even uglier fast and then got bloody.
Over the months, the former colleagues in agency arms have been battering each other with CAA spun tales of undercover moles of sorts in action, whoops of caught ya on camera and other Concealment of Unlawful Conduct sub-claims, talent snatching, and hopes by Range for dismissal due to overlap with the arbitration. To that, Judge Mark Young in August gutted big parts of CAA’s allegations. Since then, with the judge giving CAA the right to take another swing and refile, there’s been amended complaints, protective orders and, in the past day alone, a smorgasbord of filings.
There’s also the fact that Range and CAA are deep in business together.
As both like to point out at various times in this public legal action and from the arbitration, the two companies share around 150 clients like Michael Shannon, Luca Gudagnino, Emilia Clarke, Stephan James, Shailene Woodley, Kingsley Bin Adir, Josh Gad, Shaboozey, and Dan Levy.
Still, with this all seeming very personal no matter what your POV, Range and their attorneys want to talk turkey.
The National Thanksgiving Turkeys on November 25, 2024 (Photo by DREW ANGERER/AFP via Getty Images)
For one thing, Monday’s injunction desiring and more than $1 million in damages seeking filing claims that “media reports” say the ragged JAMS arbitration has already gone in Range’s favor and CAA’s side has “collapsed.” To that, they assert “the arbitrators have already ruled as a matter of law, that CAA’s noncompetes are invalid and illegal.”
While noncompetes are still legal in places like New York State, though less so than just a few years ago, they have long been disallowed on the West Coast – which is where CAA and Range are HQ’d. So, regardless of where the confidential (but much leaked) arbitration between CAA and the Range Four actually is, and what has or has not been ruled, there are some actual statutes on the books about noncompetes.
To reinforce that point, because some employers still try to put them in contract and agreements or try to have the contact officially validated in another jurisdiction a Golden State law a few years ago hit the halt button – along with the allure of potential “damages, injunctive relief, and reasonable attorneys’ fees.” (Sound familiar?)
“Effective January 1, 2024, Senate Bill (SB) 699 makes it generally illegal for employers to enter into noncompete agreements with California employees,” California’s Attorney General and possible 2026 gubernatorial contender Rob Bonta noted in October 2024. “This applies to agreements signed both within and outside California. Employers who enter into or attempt to enforce void agreements will be committing a civil violation.”
Of course, like so much of this case, it all comes down to the personal and perspective. To that, Range and their Gibson, Dunn & Crutcher defense and now offense team saved what may be the best spoilt meat for last.
“Range recently learned that one CAA agent left CAA to join another management company (and kept his equity) because CAA threatened to cancel his equity if he joined Range,” tonight’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 cancel his equity if he did so,” the filing continues. “These unlawful threats have caused real harm to Range. But for CAA’s intimidation and threats to cancel the equity of these CAA agents, these agents-turned-managers would have joined Range, bringing with them their expertise, clients, and revenue.”
Long lawsuit and countersuit short: Give us our money.
CAA did not respond to Deadline’s request for comment on the counter-suit before posting. If and when they do, we will update this article.
