CE DESK 
WPP is sued for allegedly misleading investors on financial outlook and client growth, with shares dropping after revealing media division struggles.
WPP, a worldwide leader in advertising and communications, is now subject to a class action lawsuit in the United States regarding claims that it misled investors on the company’s financial performance and client expansion. The class action lawsuit was filed in the Southern District of New York and pertains to investors that acquired shares of WPP in the time frame of February 27, 2025, to July 8, 2025.
The lawsuit claims that WPP lied and misstated information of a material value concerning revenue predictions and destabilizes the balance of cash flow concerning client retention, all while hiding the fact that the WPP Media (formerly GroupM and a part of WPP) was facing a decline in performance and had started losing cash and market share to competition. Whit these market share losses, the division under the WPP umbrella had weak cash flow and overall performance, primarily exacerbated by the underlying economic conditions.
On July 9, 2025, WPP published a trading update which reflected a broader decline in performance for the second quarter, particularly attributing the decline to weak net new business and ongoing restructuring in their media division. WPP’s stock price declined by about 18% the same day, to the detriment of investors. The price drop occurred immediately after the update was published.
The lawsuit aims to recover damages for shareholders who purchased WPP stock during the allowable period for claiming damages, alleging WPP’s violation of the federal securities laws, including the Securities Exchange Act of 1934. Class members may serve lead plaintiff motions until December 8, 2025..
