“There existed within Interpublic a corporate culture and leadership that permitted and required lower-level executives to cook the Company’s books. These former Interpublic employees claim that the announced $181.3 million restatement represents only a fraction of the Company’s historical overstatement of its financial results.”
“The net result of these accounting manipulations was that in certain years during the period 1997 through 2001 operating profit of the Colombia operations was overstated by as much as 500%”
“Beginning in 1997, McCann’s Latin American regional and area CEOs and CFOs came under increased pressure from Interpublic and McCann’s leadership to meet budgeted operating profit numbers at all costs, even if that required overstating reported revenues and understating reported expenses.”
Those are statements from the case invlolving the Interpublic suit. Seems we have a few Dennis Kozlowski’s in our advertising business.
[via Ad Age]
