Interpublic Group of Cos. reaches $12M settlement with SEC

NEW YORK

Interpublic Group of Cos. says it reached a settlement with the Securities and Exchange Commission on securities fraud charges.

As part of the settlement, subsidiary McCann-Erickson will pay a $12 million civil penalty.

The New York-based advertising and marketing services provider says the SEC charges related to intercompany accounting practices at McCann. Those issues were addressed in a restatement of Interpublic's results from 1997 to 2002, and did not involve client funds.

Separately, the SEC says it filed enforcement actions against two former executives, Salvatore LaGreca and Brian Watson, for their roles.

LaGreca served as McCann's vice chairman of finance and operations from January 1996 to October 2002. Watson was director of operations for McCann's European-Middle East-Africa region in 1996.

Shares recently traded up 32 cents, or 3.5 percent, at $9.37.