WPP Lawsuit 2025: What Asian Leaders Need to Know
WPP faces a shareholder lawsuit. The firm plans to “vigorously defend” the case, as no court has ruled against it.
WPP faces a US securities class action lawsuit in New York, filed on October 09, 2025, alleging it misled investors before a July profit warning. The trading update was followed by an 18.1% one-day drop in its US share price.
The complaint focuses on statements about the company’s media division and covers buyers of WPP stock from February 27 to July 08. WPP said it would “vigorously defend” the case and noted no court has ruled against it.
Allegations, timeline, and market reaction
The case was filed in the Southern District of New York. It alleges WPP issued materially misleading statements about its media arm’s competitive position and outlook ahead of the July update.
The company is dual-listed in London and New York, and WPP had forecast in February that 2025 revenue would decline 0% to 2%.
On July 09, the stock fell from the previous day's price of US$35.82 to US$29.34. In London, the share price moved from £527.6 to £428.6p that day. The July trading update guided to a second-quarter net revenue decline of 5.5% to 6%. Full-year revenue was down 3% to 5%, and first-half revenue was down 4.2% to 4.5%.
Leighton Cosseboom
Regional investor relations considerations
Companies with US listings are subject to local securities laws, and legal guidance stresses early coordination between legal, finance, and communications when securities claims emerge. Shareholder activism in Asia reached a record high this year, raising the stakes for clear and timely investor messaging.
Investor relations advisories emphasize prompt, factual updates to protect credibility during legal events. Crisis communications can affect financial outcomes, especially when multiple markets and listings are involved.
Practical communications advice in such cases can include:
- Align legal, finance, and comms on the facts, timelines, and key metrics before issuing updates.
- Prepare investor and client Q&A that matches public filings and trading updates.
- Keep internal teams aligned on a single message across regions and languages, supported by clear crisis protocols.
Company changes and next steps
WPP restructured its media arm in May, with GroupM transitioning to WPP Media, a change framed as disruptive but necessary in industry coverage of the move. The July update referenced pressure in WPP Media and Ogilvy. The company later announced a leadership transition, with Cindy Rose named CEO. Separately, Mark Read is set to exit after seven years as CEO.
WPP has also cut its outlook amid client losses and slower ad growth, according to industry reporting on its trading updates. Several US law firms have publicized the lawsuit and are seeking investors to join the proposed class.
No court has ruled on the claims. WPP says it will litigate the case while continuing to update investors through trading statements and regulatory filings.
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