Core Viewpoint - A former executive at WPP, Richard Foster, is suing the company for retaliation and wrongful termination after he raised concerns about alleged improper kickback practices within GroupM, WPP's media investment division [1][4][23] GroupM's Alleged Practices - Foster claims that GroupM engaged in "volume-based discounts," leveraging client ad budgets to secure undisclosed incentives from media owners, which were not passed back to clients [3][6] - The lawsuit alleges that GroupM generated between $3 billion and $4 billion from rebate-driven deals over the past five years, improperly retaining approximately $1.5 billion to $2 billion [7][6] Legal Context - While receiving media rebates is not illegal in the US, legal experts warn that undisclosed rebates could breach contracts or constitute fraud [5] - Public companies must accurately record all income, including rebates, in their financial statements [5] Industry Background - The issue of agency kickbacks has been a concern in the advertising industry, with previous reports highlighting non-transparent practices among media agencies [11][12] - The Association of National Advertisers published a report in 2016 indicating that rebates and non-transparent practices were "pervasive" among US media agencies [11] WPP's Current Situation - WPP is facing a challenging period, expecting a second consecutive annual revenue decline, with its share price having more than halved in the year to date [13] - The company has lost key media accounts to competitors like Publicis Groupe and Omnicom [13] Foster's Actions and Allegations - Foster claims he raised concerns about rebate practices with senior executives, including former CEO Mark Read, but was met with retaliation [14][22] - After submitting a report detailing his concerns, Foster alleges he was excluded from key meetings and decision-making processes before being terminated without cause [20][22] Legal Claims - The lawsuit, filed in the New York State Supreme Court, seeks over $100 million in damages for retaliation, wrongful termination, and violations of whistleblower protection laws [23]