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ManghamGaxiola settles out of court with Ogilvy, issues ‘unreserved apology’

Seriously sorry: ManghamGaxioloa

Seriously sorry: ManghamGaxiola

ManghamGaxiola, the independent creative agency founded by former Ogilvy Singapore boss Stephen Mangham and ex-Ogilvy creative heavyweight Robert Gaxiola, has reached an out-of-court settlement with their former agency over a dispute believed to centre on the poaching of a client during a non-compete period.

Though the details of the case remain confidential, Ogilvy took legal proceedings against MG in Singapore’s High Court over the move of former Ogilvy client CIMB to the start-up in September last year, Mumbrella understands.

Mangham was group chairman of Ogilvy Singapore for more than six years, and resigned four months after being posted to Indonesia in August 2011.

Gaxiola was Ogilvy Singapore’s ECD for two years, and left in July 2011.

The duo got together to launch ManghamGaxiola at the start of 2012.

A statement on the website of WPP, Ogilvy’s owner, headlined “Unreserved apology given by Stephen Mangham and Robert Gaxiola”, reads:

This statement is made by Stephen Mangham and Robert Gaxiola following settlement of the proceedings commenced against them and their agency ManghamGaxiola in the High Court in Singapore by Ogilvy Singapore. The terms of settlement are confidential, but this statement is given to apologise unreservedly for our involvement in this matter.”

We accept that Ogilvy Singapore had no option but to take legal action against us to protect their business interests and were justified in doing so. We accept that our conduct in setting up Mangham Gaxiola over stepped the mark. In particular, we should not have approached Ogilvy clients whilst Stephen was subject to contractual restrictions during garden leave and he should not have placed himself in a position of conflict whilst still an Ogilvy employee. We regret that this litigation was necessary and hope that with this settlement and apology we can put this matter behind us.

ManghamGaxiola and Ogilvy both declined to comment further.

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