MDC Partners CEO Scott Kauffman Photo: MDC PartnersAd company MDC Partners Inc. said in a securities filing that one of its subsidiary agencies has been subpoenaed by the U.S. Justice Department, as the government investigates whether ad agencies have manipulated contract pricing to steer production of commercials to their in-house units. The ad company, which owns well-known ad agencies including Crispin Porter + Bogusky and 72andSunny, disclosed its involvement in the probe in its annual report that was filed with the Securities & Exchange Commission. “The Company and its subsidiary are fully cooperating with this confidential investigation,” MDC said in the filing. The Wall Street Journal reported in December that the Justice Department was investigating whether advertising agencies inappropriately steered contracts for making commercials to their in-house production units, disadvantaging independent companies. MDC is the latest ad company to disclose it has been contacted by the Justice Department.

Source: Wall Street Journal March 02, 2017 17:26 UTC