Former WPP executive alleges Sony uncovered global rebate scheme at ad giant

In a new filing, former GroupM senior Richard Foster alleges that Sony, a key advertising partner, concluded WPP had systematically withheld client rebates, describing the practice as a "global crime scheme" spanning markets such as China. The suit details how WPP’s media investment division allegedly leveraged aggregated advertiser spend to negotiate rebate terms, then used intermediary brokers to retain a share of those rebates, ultimately inflating its margins.

Sony’s presentation, cited in the complaint, shows $110 million returned to advertisers in 2024 while $350 million remained in a rebate reserve for future use by WPP. The investigation drew on evidence from a Chinese criminal trial involving WPP executives and interviews with former GroupM staff, supported by contract language, transaction data, internal emails, and tracking system documents. Foster, who claims he was fired for raising the issue, is pursuing at least $100 million in damages and declined a large termination package that included a nondisclosure clause. WPP has moved to dismiss the case, calling the allegations baseless, while the lawsuit remains pending.