McCann alleged president and chief executive Lori Senecal met with Miles Nadal, the chairman of KSB&P's parent company MDC, "on an almost daily basis" to discuss which clients and key employees she could take with her, before taking the helm at KBS&P.
KBS&P has now settled with McCann, avoiding dragging the allegations into court.
In the terms of the agreement, KBS&P has made no admission of wrongdoing, and no payment of monetary damages or compensation of any kind has been paid by either parties.
The pair have agreed however, that KBS&P will not recruit or hire anyone from McCann or service any McCann clients, until the end of October.
