RADNOR, Pa., Aug. 7 LAWFUEL – The Law Newswire — The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Connecticut on behalf of all common stock purchasers of Greenfield Online, Inc. (“Greenfield Online” or the “Company”) from February 9, 2005 to September 30, 2005, inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected]
The Complaint charges Greenfield Online and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Greenfield Online is an independent collector of consumer opinions, which they provide to the global marketing research industry. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that internal performance expectations were not being met; (2) that the Company’s revenues and earnings would be significantly impacted in subsequent financial quarters; (3) that the highly touted Ciao AG acquisition was unsuccessful in its implementation and integration, and that Ciao AG was not performing as previously expected; (4) that the Company’s financial statements overvalued the Ciao AG acquisition, and should have been written down to reflect Ciao AG’s actual value; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company’s statements about its financial well-being, earnings, and future prospects were lacking in a reasonable basis when made.
On August 9, 2005, after the market had closed, the Company announced that it was revising its 2005 revenue guidance downward to $95 to $99 million, down from the $102 to $108 million revenue guidance previously provided to investors. The Company announced that its bid volume in the second quarter was essentially flat in the U.S., and that its revised outlook also reflected an estimated $1.5 million negative adjustment related to the Company’s estimates for foreign currency translation. On this news, shares of the Company’s stock declined $3.31 per share, or over 27% percent, to close on August 10, 2005 at $8.94 per share, on unusually heavy trading volume.
Then on September 29, 2005, the Company announced preliminary its Third Quarter 2005 results which revealed that the Company expected to report quarterly revenue of $22 to $23 million, which was significantly below the quarterly revenue guidance previously provided of $26 to $27 million. Additionally, the Company reported that it had replaced its President and Chief Executive Officer, and had elected new Directors to the Company’s Board. On this news, shares of the Company’s stock declined an additional $1.53 per share, or almost 22 percent, to close on September 30, 2005 at $5.44 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com.
If you are a member of the class described above, you may, not later than September 24, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Schiffrin Barroway Topaz & Kessler or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at [email protected]