Former WPP executive sues company for $100 million

A former senior executive at WPP has filed a lawsuit against the advertising giant, accusing it of firing him in retaliation after he raised concerns about alleged improper rebate practices within its media arm, according to a report by Business Insider.

Richard Foster, who spent 17 years at GroupM, now rebranded as WPP Media, claims the agency’s trading division engaged in undisclosed “volume-based discounts.” These involved using the group’s large ad budgets to secure rebates or discounted inventory from media owners, which were allegedly not always passed on to clients.

In his lawsuit, filed in New York State Court, Foster alleges that the agency generated hidden profits through these rebates and failed to act in the best interests of its advertiser clients. He claims the company earned between $3 billion and $4 billion through such deals over five years, retaining up to $2 billion, though the suit does not provide supporting documentation. The lawsuit is seeking over $100 million in damages.

Foster also alleges that after presenting his concerns to senior WPP and GroupM executives, including a report outlining the potential legal risks of these practices, he was dismissed instead of his claims being investigated.

A WPP spokesperson told Business Insider that the company was aware of the lawsuit and that the court had not yet made any findings, adding that the agency would “defend them vigorously.”

The case revives longstanding scrutiny of rebate and kickback practices in the ad industry. Similar issues surfaced nearly a decade ago when the Association of National Advertisers published a report alleging that such practices were widespread among media agencies in the US.

Foster’s lawsuit comes as WPP faces financial headwinds, including revenue declines and the loss of major media accounts to rival holding companies.