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BOSTON Interpublic Group today said it has reached a settlement agreement with the Securities and Exchange Commission covering all charges brought by the SEC against IPG and its McCann Erickson unit over past accounting imbalances stemming mainly from the overbooking of revenue by McCann offices in Europe.
The SEC launched the probe in 2002 after IPG reported a $181.3 million accounting imbalance.
According to a statement from IPG: “While neither admitting nor denying the allegations brought by the SEC, Interpublic and McCann have agreed to an injunction against violating the applicable provisions of the federal securities laws, and McCann has agreed to pay a civil penalty of $12 million and disgorgement of one dollar.”
In the same statement, IPG CEO Michael Roth said: “As previously disclosed, IPG and McCann have cooperated with the Commission from the start of its investigation.
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