WPP Whistleblower Case: Sony Probe Allegations Threaten Motion to Dismiss
- Former GroupM executive Richard Foster has filed an amended complaint in New York State Supreme Court.
- The new filing arrives just days before a scheduled hearing on WPP's motion to dismiss the lawsuit entirely.
- According to MediaPost, Foster's amended complaint details a separate probe by Sony Pictures.
Former GroupM executive Richard Foster has filed an amended complaint in New York State Supreme Court. The legal action alleges that Sony Pictures conducted an independent investigation supporting his whistleblower claims that WPP’s media buying arm secretly pocketed millions in unlawful client rebates.
Sony Investigation Backs Whistleblower Claims
The new filing arrives just days before a scheduled hearing on WPP’s motion to dismiss the lawsuit entirely. Foster is seeking $100 million in damages. He claims he was wrongfully terminated after attempting to expose the internal rebate scheme.
Uncovering Millions in Retained Funds
According to MediaPost, Foster’s amended complaint details a separate probe by Sony Pictures. This investigation concluded that GroupM, now known as WPP Media, illicitly retained client rebates in 2023 in China and other markets.
The documents state that Sony’s investigation found approximately $110 million was passed to clients. Meanwhile, $350 million was wrongfully retained by WPP.
Methods and Tracking Documentation
These included contractual language regarding rebate policies, transaction-level financial reporting, internal emails, and tracking documentation.
Foster’s filing asserts that Sony representatives uncovered specific mechanics. They found WPP used proprietary media and programmatic channels to manipulate inventory discounts, subsidizing remaining balances with funds from hidden rebate pools.
The China Connection and Legal Fallout
The legal escalation connects to a 2023 investigation by Chinese authorities into rebate mismanagement at GroupM China. That investigation culminated in September. Di Fei, the former chief investment officer for WPP Media in China, received a life sentence after being convicted of bribery and kickback charges tied to a scheme valued at roughly ¥1.2 billion, or approximately $176 million, according to AgencyRank and MediaPost.
WPP has consistently maintained that the company itself was not a party to the Chinese government’s investigation and cooperated fully throughout the process. WPP representatives also noted that Fei is currently appealing his conviction.
Legal arguments center on whether the whistleblower case has enough substance to proceed past WPP’s motion to dismiss. The holding company has sought to frame prior compliance failures as geographically isolated to its regional Chinese operations.
Existential Risk and Corporate Defense
Foster’s amended complaint further alleges that WPP executives acknowledged the gravity of the rebate practices internally. According to MediaPost, the filing claims Nicola McCormick, general counsel at WPP and formerly general counsel at GroupM, characterized the risk posed by the trading practices as existential when questioned by Foster.
WPP has dismissed the latest legal maneuvers as an attempt to salvage a weak case. A WPP spokesperson stated, as reported by MediaPost: This amended complaint, filed just prior to the hearing, is an attempt to avoid its dismissal. Both complaints are baseless and without merit, and WPP will be re-filing an updated motion to dismiss. We have confidence that this matter will be resolved through due legal process.
The New York State Supreme Court hearing proceeds as WPP prepares its updated dismissal motion. The newly introduced client audit documentation now forms a central pillar of Foster’s ongoing litigation.