Dentsu and Steve Biegel reach settlement

by Darren Davidson, Brand Republic 08-Jul-08, 09:00

LONDON - The legal row between Japanese ad agency Dentsu and Steve Biegel, its former US creative director, which involved allegations that he was pressured into visiting a brothel and engaging in sexual activities while on company business, has been settled.

Biegel also alleged that he was sacked after he complained, whilst Dentsu had previously issued a counterclaim, accusing him of libel and fraud.

In a filing to the US District Court in Manhattan, Biegel claimed Toyo Shigeta, the chief executive of Dentsu Holdings USA, duped him into going to a brothel during a shoot in the Czech Republic in June 2004.

Four months later, at a Tokyo bathhouse, he alleges he was instructed to climb naked into a bath with Shigeta.

Dentsu claims Biegel's contract was terminated when the company refused to yield to his unreasonable demands. It charges him with making "outrageous allegations" concerning alleged incidents.

The legal wrangling began last October when Biegel filed a lawsuit against Dentsu last October.

Terms of the settlement have not been disclosed, but a statement has been issued, which reads in part: "As a result of this settlement, those allegations and claims have been dismissed, including any potential counterclaims that have not been asserted by Dentsu. Both parties retract all public statements."

The statement continues: "Any other terms of the settlement shall remain confidential, and the parties have agreed not to disclose anything regarding this case or its settlement.

"Through this settlement, both parties wish to put the dispute behind them and move on to successful future endeavors."