Dozens of Hollywood Business Managers Sue to Invalidate Non-Competes

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NKSFB, the largest business management firm in the country and one of Hollywood's most trusted advisors, is at war with its parent company Focus Financial Partners.

It’s important to note up front that this situation involves some confusingly similar-named companies. The original firm was Nigro Karlin Segal Feldstein & Bolno legally, but colloquially

The contract at issue is a July 2022 amended and restated management agreement. “The non-compete provision in the ARMA expressly states that it is being entered into ‘[i]n consideration of the compensation to be paid to the Management Company’ ,” states the complaint. “As the original five-year non-competition restriction contained in the Contribution and Purchase Agreement has expired, the new non-compete provision in the ARMA is the sole non-compete provision that Plaintiffs are challenging.

The Nigro Karlin principals are asking an L.A. judge for a declaratory judgment that the choice of Delaware law in the agreement is improper and unenforceable and that, under California law, the non-competition provisions are also unenforceable to the extent they include services rendered in California. They’re also seeking an injunction that would bar Focus from “being able to pursue their professional and business interests following termination of their employment with the Management Company.

 

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