WPP PLC made overly rosy statements about the competitiveness and financial health of its media division before disappointing results caused a stock drop, an investor says in a suit filed Thursday.
The company concealed that its media unit couldn’t handle “ongoing macroeconomic challenges” and had “begun to lose significant market share to its competitors,” Jack Marty said on behalf of a proposed class of investors. He filed his suit in the US District Court for the Southern District of New York.
But on July 9, WPP reported a “deterioration in performance as Q2 has progressed,” in part blaming the “distraction” ...