NEW YORK, JULY 31, 2002 (PRIMEZONE) -- On June 13, 2002, Wolf Popper LLP filed a securities fraud class action complaint against Omnicom Group Inc. ("Omnicom") (NYSE:OMC) and certain of its senior officers on behalf of all persons who purchased Omnicom common stock on the open market during the period April 25, 2000 through June 11, 2002, inclusive (the "Class Period"). Events subsequent to the filing of that complaint have significantly substantiated the complaint's initial allegations.
On June 17, 2002, Omnicom acknowledged that it had received an informal request from the SEC concerning two directors who had reportedly resigned from Omnicom's board for reasons relating to transactions that the plaintiff alleges in the action were intended by defendants to avoid reporting Omnicom's losses on internet investments.
Omnicom also disclosed, in a filing with the SEC on July 8, 2002, that it had incurred $395 million in future payment obligations in connection with recent acquisitions, which were previously undisclosed to investors.
The complaint filed by Wolf Popper also alleges that Omnicom fraudulently reported growth in "organic" revenue that included revenue generated by newly acquired companies, and failed to disclose its contingent obligations to make additional investments in certain partially acquired companies.
Omnicom common stock has fallen approximately $30.00 per share, or over 33%, as a result of the revelations of the true facts, as alleged in the complaint filed by Wolf Popper.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
As previously announced, any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than August 12, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you are interested in serving as a lead plaintiff or have questions or information regarding this action, you may call or write:
Wolf Popper LLP Robert C. Finkel, Esq. or Michele F. Raphael, Esq. 845 Third Avenue New York, NY 10022-6662 Tel.: 212.451.9620, Toll Free: 877.370.7703 Fax: 212.486.2093, Toll Free: 877.370.7704 email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.