In a legal move that has sent ripples through the corporate landscape, former Scangroup CEO Bharat Thakrar has initiated legal action against WPP PLC, its subsidiary WPP Scangroup, and their directors in a Nairobi court, alleging substantial financial loss and reputational harm following his suspension.

Thakrar, who maintains a 10.49 per cent stake in WPP Scangroup, seeks redress for what he describes as the fallout from his removal from the company he founded.

"I also believe that due to WPP’s interference with a prospective business relationship between Airtel Africa Plc and I, I have divested of the full value of the prospective business," Thakrar asserts in his affidavit, underlining the ramifications of WPP's alleged actions.

Thakrar's lawsuit, as outlined in the court documents, demands more than half a billion Kenyan shillings in damages, along with compensation for potential lost earnings if he had remained as CEO of Scangroup.

The financial claims, he argues, are commensurate with the magnitude of the losses incurred.

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"The plaintiff’s causes of action arise from 1st defendant (WPP Plc)’s unlawful interference with contractual relations…and or unlawful inducement of breach of contract in respect of the plaintiff’s contract with the 2nd defendant (WPP Scangroup)," the suit papers state, delineating the legal grounds for Thakrar's claims.

Thakrar alleges a conspiracy by WPP and its Kenyan subsidiary to tarnish his reputation, contending that his suspension stemmed from an investigation conducted through illicit means.

He accuses WPP of manipulating board composition and investigative processes, contravening regulatory guidelines and breaching duties of care.

"They are also being accused of failure to disclose to the CMA the extent of the involvement of WPP," the lawsuit highlights, pointing to alleged lapses in disclosure by the accused directors.

At the core of Thakrar's grievance is the contention that his resignation from Scangroup was not voluntary but coerced.

He cites the undue influence of Andrea Harris, WPP Plc's Group Chief Counsel, in the decision-making process, despite the existence of a separate committee tasked with overseeing the investigation.

As the legal battle unfolds, Thakrar's lawsuit raises broader questions about corporate governance and accountability within multinational corporations operating in Kenya.

The outcome of this case could significantly impact executive accountability and corporate practices, setting a precedent for future disputes in the corporate sphere.