New York / London: WPP plc, the UK-based advertising and marketing services giant, is at the center of a proposed class action lawsuit in the United States following allegations that it misled investors about its financial outlook and client growth.
The lawsuit, filed in the U.S. District Court for the Southern District of New York by law firm Levi & Korsinsky on October 9, targets shareholders who purchased WPP securities between February 27, 2025, and July 8, 2025. The complaint claims WPP violated provisions of the Securities Exchange Act of 1934, including Sections 10(b) and 20(a), as well as SEC Rule 10b-5.
According to the filing, WPP publicly asserted that its revenue projections were based on reliable information and indicated it could sustain steady growth while managing seasonal and macroeconomic risks. The company also highlighted its ability to win new clients and retain existing accounts.
However, the complaint alleges that these statements were materially misleading. When WPP later issued a profit warning on July 9, 2025, investors suffered significant losses. WPP shares, which closed at $35.82 on July 8, dropped by approximately 18% to $29.34 on July 9. In the UK, the stock fell from 527.6p to 428.6p.
Levi & Korsinsky claims that WPP “disseminated materially false and misleading statements and/or concealed material adverse facts” about the true condition of its media operations, particularly WPP Media (formerly Group M), which was reportedly struggling to navigate macroeconomic challenges and losing market share to competitors.
The lawsuit comes amid a turbulent year for WPP, which has seen its share price more than halved in 2025, impacted by revenue declines and the loss of major accounts, including Coca-Cola’s media in North America in March and Mars’ global media in June. WPP had previously forecast a 0–2% annual revenue decline in February, but its July trading update projected a 3–5% fall for the full year.
In May, Group M was restructured and rebranded as WPP Media, with its agency brands consolidated under a single P&L. The July 9 trading update attributed deteriorating performance to continued macroeconomic uncertainty, weaker-than-expected net new business, and operational distractions from the restructuring.
Following the profit warning, Cindy Rose was announced as the incoming CEO, succeeding Mark Read, who had stepped down earlier in June.
The class action has not yet been certified. Shareholders who take no action remain absent class members but could be affected by the litigation’s outcome. Several U.S. law firms have reached out to potential plaintiffs to discuss participation in the case.
