Problems continue to mount for Interpublic Group, which is now being sued by former shareholders of True North Communications for misleading them when the two companies merged.
A filing with the Securities & Exchange Commission has revealed that two class action suits have been launched at Circuit Court in Cook County, Illinois. They allege that IPG, prior to its purchase of TN in June 2001, failed to reveal fully a number of charges which culminated in the recent restatement of $181.3 million (€176.8m; £113.1m) of earnings [WAMN: 10-Dec-02].
They claim that Interpublic management released misleading statements when issuing the 67.6m shares used to complete the deal.
The litigation does not end there. Interpublic also revealed that shareholders have launched four lawsuits against its board of directors for breach of fiduciary duty.
The agency giant said it “intends to vigorously defend the actions [and] has no reason to believe that the final resolution of the actions will have a martial adverse effect on its financial condition.”
Data sourced from: multiple sources; additional content by WARC staff