WPP hit with US securities class action alleging misleading outlook

New Delhi: WPP plc is facing a proposed US securities class action that alleges the company misled investors about its financial outlook and the competitiveness of its media division.

As per reports, the complaint, Marty v. WPP plc (No. 25-cv-08365, S.D.N.Y.), seeks to represent purchasers of WPP common stock between February 27, 2025 and July 8, 2025 and asserts claims under the US Securities Exchange Act (Sections 10(b) and 20(a)) and SEC Rule 10b-5. 

The suit, filed earlier this month, claimed the company violated federal securities laws by concealing risks and adverse facts, leading to significant investor losses when the truth emerged.

Plaintiff notices state that motions to be appointed lead plaintiff are due December 8, 2025. Several law firms have issued investor reminders referencing that deadline.

The suit points to July 9, 2025, when WPP issued an unscheduled trading update warning of a steeper-than-expected deterioration in Q2 and cut its full-year outlook; WPP’s shares fell roughly 16–18% on the day across London and New York.

WPP said it will “vigorously defend” the claims. The class action arrives amid leadership transition: WPP announced in June that Mark Read would retire as CEO at year-end 2025, and in July named Cindy Rose as his successor, effective September 1, 2025.