Dive Insight:
- Marketing software company RadiumOne fired its CEO, Gurbaks Chahal, after he pled guilty to charges of domestic violence against his girlfriend.
- COO Bill Lonergan will immediately take over for Chahal.
- Chahal is still reportedly a majority shareholder for RadiumOne, so the firm could face further backlash even though he is no longer CEO.
Dive Brief:
Chahal has retaliated in a blog post in which he claims the charges were false and he only took the plea bargain to shorten the process. RadiumOne faces a long road to recovery after this scandal. Regardless of Chahal's attempt to clarify the situation in writing, the likelihood that potential clients will read his personal blog is slim — not to mention his explanation is confusing and he comes off a bit arrogant by including himself in the "celebrity" category. His heavy stake in the company could cause client loss and will certainly have some RadiumOne employees looking for opportunities outside the firm. Major client Conde Nast has already put its relationship with RadiumOne up for review.