As if WPP didn’t have enough problems on its hands, the UK-based ad holding company is being pursued by a host of class action lawyers in the US following its surprise profit warning in July (which led to CEO Mark Read’s departure) and unveiling of half year numbers in August..
The lawsuits are seeking to represent investors who bought the shares in the US between February 27 and July 8. In February WPP said it expected a relatively minor decline in revenue of 1-2% while in July it confirmed an H1 fall of 4-5%, 5-6% in H2.
The Schall Law Firm claims that “WPP falsely claimed to investors that its projected revenue outlook was based on reliable information. The Company also claimed that it could maintain growth while minimizing risk from seasonality and other factors.
“The Company touted its ability to achieve new client wins and retain existing clients, but fell short in both categories. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about WPP, investors suffered damages.”
WPP shares are currently trading at 340p against a year high of 930p.
