Case Page

 

Case Status:    SETTLED
On or around 11/04/2004 (Date of order of final judgment)

Filing Date: August 15, 2002

According to the Company’s Form 10-K for the fiscal year ended December 31, 2004, on December 2, 2003, the Company reached an agreement in principle to settle the consolidated class action shareholder suits in federal district court in New York. Under the terms of the settlement, the Company agreed to pay $115.0 million, comprised of $20.0 million in cash and $95.0 million in shares of the Company’s common stock at a value of $14.50 per share. On November 4, 2004, the court entered an order granting final approval of the settlement. The term of appeal for the settlement expired on December 6, 2004.

In an article in the New York Law Journal dated November 19, 2003, the court granted plaintiffs' motion for certification, finding that plaintiffs showed that common questions of law and fact predominate. The court added that plaintiffs suffered similar injuries resulting from the same alleged course of action and that all plaintiffs will rely on the same or substantially similar documents, statements and legal theories to prove defendants' liability.

On February 7, 2003, the company filed a motion to dismiss the Consolidated Amended Complaint. According to the court Order from the U.S. District Judge Denise Cote of the Southern District of New York, the defendants' motion is granted in part. Specifically, the defendants' motion to dismiss Counts I, II and IV of the Complaint is denied. The defendants' motion to dismiss Count III is granted as to all of the Individual Defendants and is denied as to The Interpublic Group of Companies, Inc.

Thirteen actions against this company were consolidated on November 15, 2002, and a Consolidated Amended Complaint ('Complaint') was filed on January 10, 2003. The amended complaint includes charges of further damage, following the company's disclosures of accounting improprieties last fall. The lawsuit also claims that the defendants tried to hide the true value of the company. Specifically, the Complaint alleges claims under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act'), 15 U.S.C. §§77k, 77o, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act'), 15 U.S.C. §§78j(b), 78t(a), and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the "SEC').

The original complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 28, 1997 and August 13, 2002, thereby artificially inflating the price of Interpublic securities. Throughout the Class Period, as alleged in the complaint, defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's increasing net income and financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that, throughout the Class Period, the Company was overstating its net income by failing to expense certain charges which should have been expensed; (ii) that the Company
lacked adequate internal controls and was therefore unable to ascertain the
true financial condition of the Company; and (iii) that as a result, the value
of the Company's net income and financial results were materially overstated at all relevant times. On August 5, 2002, Interpublic announced that it would be rescheduling the release of its second quarter 2002 earnings "to accommodate the Audit Committee of its Board of Directors," which was interpreted by the market to potentially involve the Company's accounting. In response to the uncertainty surrounding defendants' announcement, investors sold off shares of Interpublic, which dropped $4.69 per share, or 23.8%, to close at $14.99 per share. On August 13, 2002, the last day of the Class Period, the nature of the Company's delay of its second quarter 2002 earnings release became evident when the Company announced, among other things, that it had "identified $68.5 million of charges, principally in Europe, which had not been properly expensed," which will cause the company to restate its previously issued financial statements going back to 1997 and prior.

COMPANY INFORMATION:

Sector: Services
Industry: Advertising
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: IPG
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 02-CV-06527
JUDGE: Hon. Denise L. Cote
DATE FILED: 08/15/2002
CLASS PERIOD START: 10/28/1997
CLASS PERIOD END: 08/13/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  4. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  5. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  6. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  7. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  8. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  9. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  10. Mark McNair
    1919 Pennsylvania Avenue, NW, Suite 800, Mark McNair , DC 20006
    703.273.3070 · wmmcnair@justice4investors.com
  11. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  12. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  13. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  14. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
  15. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 02-CV-06527
JUDGE: Hon. Denise L. Cote
DATE FILED: 01/10/2003
CLASS PERIOD START: 10/28/1997
CLASS PERIOD END: 10/16/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date