A former GroupM executive claims WPP Media kept millions in client rebates. Sony Pictures' internal probe reportedly uncovered $350 million misappropriated in China. WPP denies wrongdoing and seeks case dismissal.
WPP Media confronts new legal pressure over alleged client rebate practices. Richard Foster, a former GroupM executive, has filed an amended complaint in New York State Supreme Court, asserting that WPP Media unlawfully retained hundreds of millions in rebates that should have gone to clients. The case centers on claims that WPP Media, formerly GroupM, used complex financial mechanisms to hide the true flow of rebates, impacting client trust and potentially affecting how agencies manage advertiser funds.
Foster's updated filing draws on findings from a Sony Pictures investigation, which he says revealed that in 2023, WPP Media in China kept $350 million in client rebates while passing only $110 million to clients. According to the complaint, Sony's probe found that WPP Media mixed principal trading funds with a rebate pool, then sold inventory back to clients at manipulated discounts. Foster alleges that this approach allowed WPP Media to shield profits from audits and artificially boost earnings, with the scheme spreading beyond China to other markets.
The amended complaint also references a separate Chinese government investigation into GroupM China employees for "rebate mismanagement," which led to the conviction of Di Fei, the former chief investment officer at WPP Media China, who received a life sentence for his role in a bribery and kickback scandal. Several other employees were convicted and received lighter sentences. WPP has stated it was not a party to the government investigation and fully cooperated with authorities.
Foster claims Sony Pictures supported its findings with contractual documents, transaction-level financial records, internal emails, and evidence from WPP tracking systems. The complaint further alleges that when Sony confronted WPP representatives about the use of unpublished rebates to fund steep media discounts, executives declined to provide an explanation. Foster also asserts that some WPP executives, including Nicola McCormick, general counsel at WPP and previously at GroupM, acknowledged the legal and existential risks of the company's rebate practices.
WPP has responded by calling both the original and amended complaints baseless and without merit, stating that the amended filing is an attempt to avoid dismissal ahead of a scheduled hearing. The company plans to re-file an updated motion to dismiss and maintains confidence in the legal process. Foster is seeking $100 million in damages.
Legal disputes over agency transparency and client fund management have drawn wider industry attention in recent years. For example, ongoing tensions between media organizations and government authorities over disclosure and accountability were highlighted when the Justice Department withdrew subpoenas for New York Times reporters, as reported in coverage of press freedom disputes.
WPP plc, headquartered in London, is one of the world's largest advertising and marketing services groups. As of 2025, WPP reported annual revenues exceeding $17 billion and employed more than 100,000 people globally. The company operates through multiple subsidiaries, including GroupM, and serves major clients across media, technology, and consumer sectors.
