WPP moves to seal Sony findings in rebate fraud lawsuit

WPP ↗ 0.38% is seeking to seal "highly confidential and sensitive" client information from a lawsuit that alleges Sony investigated the advertising giant's media operations and concluded it ran a "global crime scene," according to a motion filed Thursday in New York State Supreme Court.Business Insider

The sealing motion follows an amended complaint filed last week by Richard Foster, a former longtime GroupM executive who alleges WPP fired him in July 2025 after he raised concerns about what he describes as an improper global kickback operation. Foster is seeking at least $100 million in damages.businessinsider

Sony's Investigation

Sony launched its own forensic probe after Chinese authorities detained and later convicted three GroupM China executives in 2023 over a kickback scheme valued at roughly $176 million. The former chief investment officer, Di Fei, was sentenced to life in prison earlier this year.moreaboutadvertising+1

According to Foster's amended complaint, Sony presented its findings to WPP's lawyers in Tokyo in December 2025. The investigation allegedly found that WPP retained 76% of rebate funds in China — $350 million against $110 million passed to clients — routing money through 47 shell brokers with no operations of their own.adweek+2

A purported Sony slide included in the complaint described the practice as a "fraud scheme" and attributed its design to senior global WPP executives. Sony drew its findings from independent investigators who attended the Chinese criminal trial and from interviews with former WPP and GroupM executives, the lawsuit says.businessinsider

WPP's Response

WPP on Thursday moved to seal portions of Foster's complaint, arguing that Sony is an uninvolved party whose privacy should be protected. The company also contends that the alleged events took place in China, where Foster did not work, and occurred after his termination.Business Insider

"Both complaints are baseless and without merit, and WPP will be re-filing an updated motion to dismiss," WPP said in a statement. A Sony spokesperson said the company does not comment on pending litigation.businessinsider

Industry Implications

Foster alleged the operation was not confined to China and was deployed globally, with GroupM improperly retaining roughly $1.5 billion to $2 billion in profits from rebate deals over five years, by his estimation. The case has drawn attention across the advertising industry, where the prevalence of "principal media" models — in which agencies buy inventory at a discount and resell it to clients at a margin — has long been contentious.moreaboutadvertising+1

As one industry commentator noted, the case reveals that standard media auditing practices examine pricing benchmarks and delivery metrics but not rebate flows through offshore broker networks — raising questions about how many advertisers have the resources to conduct the kind of forensic investigation Sony undertook.moreaboutadvertising