Leap Files Lawsuit

The Leap Group has filed a lawsuit against three former executives of the company’s YAR Communications subsidiary who were dismissed following the sale of YAR’s biggest account.
In the suit, the Chicago holding company and YAR accuse YAR’s founders, Yuri and Anna Radzievsky, and a former employee, Greg Fomin, of “breaches of fiduciary duty.” The suit seeks compensatory damages of $4.2 million and punitive damages of $9 million.
The lawsuit, filed in the Supreme Court of the State of New York, also charges the Radzievskys with “tortious interference” in Leap’s sale of the bulk of its One World Communications subsidiary to Young & Rubicam.
Leap has also sued the New York accounting firm of Finkle, Ross & Rost, who worked for the Radzievskys, charging it with breach of contract and accountant malpractice. That suit asks for damages in excess of $13.5 million.
Early this fall, Leap included YAR’s business from its largest client, AT&T, as part of a $6.8 million sale of One World Communications to Y&R. The Radzievskys and other YAR executives were subsequently fired. The Radzievskys, who have said the Y&R deal was done without their involvement, filed a demand on Dec. 4 for arbitration before the American Arbitration Association, charging they were fired without cause and that Leap failed to comply with their employment agreement.
The One World sale earlier was held up because of lawsuits and a previous request for arbitration filed by the Radzievskys, but those actions were dropped.
The lawsuit information was included in a quarterly report Leap filed with the Securities and Exchange Commission.
The company declined additional comment. Yuri Radzievsky, a onetime member of Leap’s board of directors, could not be reached at his home for comment.