Defendant Name: McCann-Erickson Worldwide, Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2008-71

Document Details

Legal Case Name SEC v. Interpublic Group of Companies, Inc. and McCann-Erickson Worldwide, Inc.
Document Name SEC Charged McCann- Erickson Worldwide, Inc., Interpublic Group Of Companies And Two Former Executives; Defendants Agree to Settle; McCann Agrees to Pay $12 Million Penalty
Document Date 01-May-2008
Document Format Civil Proceeding
Case Number 08-cv-04075
Allegation Type Issuer Reporting and Disclosure
Document Summary 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."

Disgorgement & Penalty Information

Resolutions
Enjoinment
Monetary Penalties:

Civil Penalty

Individual:     $12,000,000.00 Shared:    

Related Documents:

comp20547 01-May-2008 Complaint
Complaint
The SEC stated: "This enforcement action primarily involves securities fraud at McCann, IPG's largest subsidiary."
LR-20547 01-May-2008 Litigation Release
SEC Charged McCann- Erickson Worldwide, Inc., Interpublic Group Of Companies And Two Former Executives; Defendants Agree to Settle; McCann Agrees to Pay $12 Million Penalty
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."
court_doc3_08-cv-04075 06-May-2008 Court Docket Document
Final Judgment as to Defendants The Interpublic Group of Companies, Inc. and McCann Erickson Worldwide, Inc.
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."

Other Defendants in Action:

Interpublic Group of Companies, Inc.