The SEC stated that: "[It] filed a civil injunctive action against McCann-Erickson Worldwide, Inc. ("McCann") and the Interpublic Group of Companies, Inc. ("IPG"). The Commission alleged that McCann committed securities fraud when it misstated its financial results by failing to expense properly intercompany charges. IPG negligently failed to address the intercompany problems at its largest subsidiary, McCann. IPG also violated the reporting, internal controls and books and records provisions of the securities laws in connection with a variety of issues that were reflected in various restatements IPG issued from August 2002through September 2005 totaling more than $600 million. IPG and McCann agreed to settle the Commission's charges, and McCann agreed to pay a$12 million civil penalty."

The SEC stated that: "[It] filed enforcement actions against global advertising network McCann-Erickson Worldwide, its parent company, and two former executives for their roles in an accounting fraud involving intercompany transactions. The SEC's complaint alleges that McCann, which owns hundreds of regional and local advertising agencies throughout the world, fraudulently misstated its financial results by improperly failing to expense intercompany charges that were instead recorded as receivables. Its holding company, Interpublic Group of Companies, Inc. (IPG), negligently failed to address the accounting problems at McCann, its largest subsidiary, resulting in material misstatements in its own financial reporting. IPG and McCann agreed to settle the SEC's charges, and McCann agreed to pay a $12 million penalty."

The Court stated: "Plaintiff Securities and Exchange Commission ("Commission") having filed a Complaint and Defendants The Interpublic Group of Companies, Inc. ("Interpublic") and McCann Erickson Worldwide, Inc. ("McCann" and together with Interpublic, the "Defendants") having entered a general appearance; consented to the Court's jurisdiction over them and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."