WPP settles C$110m Goldfarb suit for C$12m

WPP has accepted C$12m (£5.5m) to settle its C$110m lawsuit against the previous owner of Canadian full service MR agency Goldfarb Consultants.

The settlement represents less than 11% of the sum sought by WPP in its April 2004 claim for “losses allegedly suffered … in connection with the business of Goldfarb Consultants” which it bought from the Goldfarb Corporation in 1998.

The Goldfarb Corporation and executives including Martin Goldfarb, who founded the MR agency in the 1960s, were named as defendants in the action.

The settlement has resulted from mediation which began in June this year.

Marketing services firm WPP acquired the MR business from the Goldfarb Corporation in April 1998, at which time its revenues were said to be C$77m for 1997. The firm was later merged with Millward Brown, in June 2002.

WPP declined to comment on the settlement, and Goldfarb representatives could not be reached for comment.

Author: Robert Bain

Related links:

C$110m Goldfarb case in mediation

WPP's C$110m suit against Goldfarb set for pre-trial