WPP will ‘vigorously defend’ itself in class action lawsuit over claims it misled investors

WPP has announced it will “vigorously defend” itself against a class action lawsuit filed in the US, claiming the agency group misled investors regarding its business value. The lawsuit, filed by Levi & Korsinsky, centers around a profit warning issued on July 9th, and seeks to represent investors who purchased WPP stock between February 27th and July 8th. The claim alleges WPP violated US securities laws, leading to a significant drop in share price – from $35.82 to $29.34 on July 9th – and accuses the company of concealing issues within its media arm, now known as WPP Media.

WPP attributes the revenue decline to macroeconomic challenges and weaker new business, partially due to restructuring within WPP Media (formerly Group M). The company initially forecasted a revenue decline of 0-2% in February, but revised it to a 3-5% drop in July. This followed a period of significant change for WPP, including the announcement of Mark Read’s departure as CEO and Cindy Rose’s appointment.

Several US law firms are publicizing the lawsuit and seeking to represent investors. WPP’s share price has significantly decreased throughout 2025, more than halving from 830p in January to around 350p recently, following revenue declines and the loss of major accounts like Coca-Cola and Mars.

(Source：Campaign US)