Interpublic shares were down by 3.4% or 44 cents as the New York market opened this morning to trade at $12.50, after reports that the company's earnings restatements are likely to exceed the most recent figure of $120m (拢76m).
The company, owner of advertising networks including McCann-Erickson, Lowe & Partners and Foote Cone & Belding, is set to report its third-quarter results at 5pm New York time this evening (10pm GMT).
Any further discrepancies in accounting will put pressure on chairman and CEO John Dooner and chief financial officer Sean Orr. The scandal has already seen the departure of Sal LaGreca, chief financial officer of McCann-Erickson, the agency at the centre of the problems. Last week, the company named Frank Borelli to the position of presiding director, charged with ensuring that the board and senior management communicate more effectively.
McCann-Erickson's European operations were found to have had inflated revenues after offices in different countries booked the same revenue for clients operating across borders. This has forced the company to restate the last five years' accounts. It first revealed the problem in August, when it said that it was $68.5m out. This figure later increased to $120m last month.
The share price of $12.50 is still well above Interpublic's lowest point -- it fell to $9.85 on October 17, after it issued a profit warning.
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