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Former Italy chief sues WPP

Marco Benatti, the former head of WPP’s Italian operations, has filed a lawsuit in Italy against the global advertising group over his alleged “irregular dismissal” from the company last month.

Signor Bennati also reserved the right to take action against Sir Martin Sorrell, the WPP chief executive “due to the immense damage he has personally created by his repeated defamatory statements”.

The move comes after WPP filed a claim in the High Court in London against Signor Benatti after an inquiry into alleged fraud at its Italian operations.

WPP is believed to be claiming more than $25 million (£14 million) from its former employee. He was understood to have spoken to Toffoletto, his lawyers, about a possible counter-claim against his former employer.

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It is understood that WPP is also looking at the dealings of a handful of individuals both inside and outside the firm. The focus of the inquiry is believed to be on irregular payments to WPP clients.

In statement today, Signor Bennati said that over the past few days his lawyers had taken up legal proceedings against WPP Holdings (Italy) and the London-listed parent company led by Sir Martin.

It added that the suit would take issue with “the manner of dismissal personally put into act by Martin Sorrell”.

A writ issued by Signor Bennati’s lawyers is understood to outline his four-year spell at WPP and “the evident successes gained by his management”. He claimed his employment was terminated “without any specific imputations”.

A spokesman for WPP told Times Online: “That facts will speak for themselves and louder than any rhetoric which attempts to divert attention from the real issue.”

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Sir Martin is thought to be furious over the way “Benattigate” has thrown his company into the media limelight.

Interest in the case was rekindled this week as sources close to the investigation of WPP’s Italian operations told The Times that the company’s Milan headquarters were broken into twice after the departure of Signor Benatti last month.

On Tuesday Signor Benatti filed a complaint to the Italian police about the alleged break-ins.

Signor Benatti suggested in his statement to police in Milan that WPP might not have reported the break-ins to the police. However, a WPP source said the first break-in had been reported.

Earlier this week, commenting on Signor Bennati’s complaint to the Italian Police, a spokesman for WPP said: “[Signor] Benatti should explain the connection between himself and Claudio Noziglia, the current head of Mondialpol.”

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It was understood that Mondialpol is the security company used by WPP in Italy, although it was not clear what the spokesman was alleging.

Shares in WPP were down 2.5p at 630p in afternoon trade. To track the stock click here.