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Bharat Thakrar, the Kenyan advertising magnate renowned for his role in founding WPP-Scangroup, has taken legal action against WPP Plc, the UK-based parent company, and its Kenyan subsidiary, WPP-Scangroup, along with their directors, in a Nairobi court.
This move follows his suspension from the company in 2021 and his announcement in February of plans to sue WPP for £24 million ($30.2 million).
Thakrar, who founded Scanad in 1982 and transformed it into WPP-Scangroup in 2013, claims that WPP’s actions have harmed his reputation and caused emotional distress through defamatory remarks.
He alleges that his suspension resulted in missed business opportunities, potentially leading to a loss of £24 million ($30.2 million). Court documents indicate his intention to seek compensation for the earnings he could have made as CEO of Scangroup.
Claims of interference and discrimination
According to court documents, Thakrar alleges that WPP made defamatory statements to Airtel Africa, damaging his reputation and interfering with potential business relationships. He asserts that his removal from WPP-Scangroup was a result of discriminatory actions and manipulation by WPP, which he claims violated guidelines set by regulatory authorities.
Thakrar further alleges that WPP intentionally leaked details of internal investigations into alleged misconduct, leading to significant reputational damage. He argues that the disciplinary proceedings against him were discriminatory and reminiscent of neo-colonialist practices, particularly targeting executives of Indian descent.
WPP Scangroup under new leadership amid legal challenge
Since March 2022, WPP-Scangroup has been led by Patricia Ithau, a seasoned executive with over three decades of experience in notable companies.
Data from the Nairobi Securities Exchange shows WPP-Scangroup shares trading at Ksh2.18 with a market capitalization of Ksh942 million (USD $6.65 million). This puts the current value of Thakrar’s 10.5-percent stake in the company at Ksh 98.9 million (USD $0.7 million).
The legal battle between Thakrar and WPP Plc, along with WPP-Scangroup and its directors, underscores the complexities of corporate governance and allegations of misconduct within the advertising industry. As the case unfolds in Nairobi’s courtrooms, it poses significant implications for the future trajectory of WPP-Scangroup and the broader advertising landscape in Kenya.
