WPP Faces U.S. Class Action Lawsuit Over Alleged Misleading Investor Statements

WPP plc, a major advertising and marketing services company, is the target of a proposed class action lawsuit in the U.S. filed by Levi & Korsinsky on October 9th. The suit represents shareholders who purchased WPP securities between February 27, 2025, and July 8, 2025, claiming violations of the Securities Exchange Act of 1934. The complaint alleges WPP misrepresented its revenue projections and growth potential, stating it could manage risks and secure new business. However, a profit warning issued on July 9, 2025, caused substantial stock declines – an 18% drop in the U.S. and a fall from 527.6p to 428.6p in the UK.

The lawsuit asserts WPP concealed issues within WPP Media (formerly Group M), which was struggling with macroeconomic challenges and losing market share. This action follows a difficult year for WPP, marked by a halved share price, revenue declines, and the loss of key accounts like Coca-Cola and Mars. The company revised its revenue forecast from a 0–2% decline to a 3–5% fall.

Following the profit warning, Cindy Rose was appointed as the new CEO, replacing Mark Read. The class action is not yet certified, and shareholders must take action to participate, but could still be affected by the outcome. Multiple U.S. law firms are currently seeking potential plaintiffs.

(Source：MediaNews4U)