WPP, one of the world’s biggest advertising agencies, disclosed a stunning trove of apparently confidential client data in an attempt to defend itself against accusations of operating self-enriching rebate schemes, according to legal documents.
In court documents, the London-based company filed a 35-page report divulging payments of more than $9 billion from its biggest clients – including name brands like Google, Coca-Cola, Ford and Unilever.
The inside look at detailed client spending and other likely confidential information could raise calls for further transparency around how ad agencies generate the bulk of their revenue.
“This is not simply a court document. It is strategic and commercial intelligence that would normally remain internal,” Ivan Fernandes, a former WPP employee who now works as a marketing consultant, told the Times of London, which earlier reported the filing.
The company submitted the document as evidence to defend itself against a $100 million lawsuit filed by Richard Foster, a British executive who spent 17 years at the ad agency and claims he was ousted for whistleblowing.
Foster worked for the firm’s media-buying division GroupM, now WPP Media, before losing his job last summer during a round of cuts.
But in November, he filed a lawsuit in the US against his former employer, alleging he was fired for sounding the alarm that the company was allegedly improperly profiting from rebates on advertising deals by not passing savings along to clients.
In the lawsuit, Foster said he raised concerns inside the company about a “non-disclosed profit center” to WPP Media boss Brian Lesser and referenced a 35-page report.
In the report, Foster said WPP has generated roughly $1 billion in net sales from “non-product related income” including rebates.
The British advertising giant responded by releasing the report in court filings, arguing it was “unequivocally not a whistleblower report” and that the company is subject to routine audits.
It called Foster a “disgruntled former employee” who was simply “attempting to extract more severance through a complaint riddled with erroneous allegations, completely unrelated situations, and a tilt towards gaining media attention,” according to court documents.
The company added that Foster had first tried to “extort” the ad agency by “delivering a draft complaint and threatening to ‘go public’ with the salacious allegations therein.”
Lawyers for Foster argued that WPP did not provide “proper evidentiary support” to accuse him of extortion.
The inclusion of the 35-page report revealed a trove of client data at WPP.
It included a graphic on the marketing spend of WPP Media’s 20 largest clients in 2023, including which platforms drew in the most dollars. Google was the clear winner, with Meta trailing in a distant second.
The table showed that WPP’s clients spent nearly $5 billion on advertising with Google – including $194 million from Unilever, $299 million from Ford and $101 million from Adidas.
It also revealed revenue details, headcounts and staff costs across various WPP divisions, and total amounts spent on the agency by companies such as JPMorgan, Shell and Cartier, according to the filing.
WPP declined to comment on ongoing litigation.
