The dollar detector factored into the DNA of the average US lawyer has registered a Richter scale quick-buck opportunity.
Self-styled ‘world’s leading class action law firm’, San Francisco-headquartered Milberg Weiss Bershad Hynes & Lerach, is advertising on its website for a lead plaintiff in the class action it filed last week against the Interpublic Group.
The action, lodged in New York, alleges "violations of federal securities laws by Interpublic Group and certain of its officers and/or directors". It relates to last week’s revelation by the agency holding company of previously unstated charges within McCann-Erickson’s European operations amounting to $68.5 million (€69.43m; £44.50m).
The discovery, which delayed publication of the group’s Q2 accounts [WAMN: 14-Aug-02], necessitated downward adjustments in profits between 1997-2000 by amounts varying between $4 million to $6.8 million annually. For the 2001 fiscal, the net loss was upped by $5.9m to $113.1m.
According to the five-headed legal Hydra, a series of material misrepresentations artificially inflated the price of Interpublic’s shares.
Wells Fargo is said to be on standby.
Data sourced from: BrandRepublic (UK); additional content by WARC staff