Yet another law firm is pursuing legal action against beleaguered agency giant Omnicom Group over its accounting practices.
The latest lawsuit has been filed by Scott+Scott, a firm based in Connecticut, representing Omnicom shareholders who invested between April 25 2000 and June 11 this year.
Around a dozen similar suits have already been launched. Like many of these, Scott+Scott’s action names not only Omnicom, but also its ceo John Wren, chairman Bruce Crawford, senior vp and controller Philip Angelastro and chief financial officer Randall Weisenburger.
The ad group’s woes follow an article in the Wall Street Journal querying the way it reported results. Said Scott+Scott: “Omnicom’s growth was attributed, for the most part, to the numerous acquisitions made by the company, which were accretive to the company's earnings.
“However, on June 12 2002, an article in The Wall Street Journal highlighted the company's acquisition accounting and raised questions concerning the company's creation of an off-balance-sheet entity in which it transferred certain internet investments.”
Data sourced from: BrandRepublic (UK); additional content by WARC staff