You will be redirected back to your article in seconds

Beverly Hills boutique behind CAA-CL gripe

The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais.

As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs alleging that CAA has “engaged in an unlawful restraint of trade” in its alliance with the French bank. CAA’s “consulting” and “advisory” role, according to the complaint, “prevents independent agencies (from) fairly competing for available business” (Daily Variety, April 12).

Jacobs said Wednesday that he could not discuss whether the FTC would pursue an investigation.

Informed sources, however, said the agency has received only one complaint and will likely wait until it receives more information regarding possible antitrust violations before proceeding with a full-blown review.

FTC officials would not respond to such speculation.

Darrell Kern said he was skeptical about what action the FTC will take, given the “assistance that CAA’s clients (including Barbra Streisand) have given to the new administration in Washington,” a reference to Hollywood’s participation in Clinton’s presidential campaign.

Kern added, “I also express skepticism toward the guilds, given their relationship with Credit Lyonnais, which is processing the residuals for at least the Screen Actors Guild.”

Not seeking pub

Kern said in coming forth as the author of the letter to the FTC, he is not looking for publicity for himself or his agency. Rather, he said: “We are taking this position for our clients’ right to compete for available work. … For our clients’ sake, we cannot allow this to go unchallenged.”

He added, “I find it incredulous that all competing agencies are so influenced and fearful of CAA’s power that they are allowing this to fall on the Kern Agency.”

CAA, which has maintained that its association with Credit Lyonnais does not post a conflict of interest, had no comment regarding Kern’s remarks.

Berg noisy

The party who has been the most vocal and vehement against the CAA/CL relationship has been ICM chairman Jeff Berg, who has not filed an official complaint with the FTC or the guilds.

On Monday, CAA met with reps from the actors, directors and writers guilds to clarify the agency’s role with CL. The parties are to reconvene next week (Daily Variety, April 13).

More Biz

  • Time Warner

    Justice Department to Sue to Block AT&T-Time Warner Merger

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • Get Out

    'Get Out,' 'Detroit,' Issa Rae, Jay-Z, Mary J. Blige Among Top NAACP Image Award Nominees

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • Al Franken Kathy Griffin

    Al Franken Cut From PBS' David Letterman Special

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • Russell Simmons, Bret RatnerVANITY FAIR OSCAR

    Brett Ratner and Russell Simmons Accused of Working Together to Carry Out Sexual Misconduct

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • get out Oscar Race

    'Get Out' Awards Category Dilemma: Film Defies Easy Labels, Cast Says

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • David Hoberman and Todd Lieberman Mandeville

    Media Access Awards Honor Hollywood for Depicting People With Disabilities

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

  • This, photo shows the 21st Century

    Sony Pictures Joins 21st Century Fox Hunt as Deal Talk Spreads Across Biz

    The Kern Agency, a fledgling Beverly Hills literary/talent boutique, has laid claim to the complaint filed with the Federal Trade Commission about potential conflict of interest in Creative Artists Agency’s new relationship with Credit Lyonnais. As reported earlier this week, agency principals Darrell Kern and Gavin Kern wrote a letter to FTC investigator John Jacobs […]

More From Our Brands

Access exclusive content