SAN DIEGO–LAWFUEL – Legal Newswire – Lerach Coughlin Stoia Geller Rudman & Robbins LLP (“Lerach Coughlin”) (http://www.lerachlaw.com/cases/valueclick/) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of ValueClick, Inc. (“ValueClick”) (NASDAQ:VCLK) common stock during the period between November 1, 2006 and July 27, 2007 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Lerach Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at [email protected] If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lerachlaw.com/cases/valueclick/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges ValueClick and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ValueClick describes itself as “one of the world’s largest integrated online marketing companies, offering comprehensive and scalable solutions to deliver cost-effective customer acquisition for advertisers and transparent revenue streams for publishers.”
The complaint alleges that during the Class Period, defendants issued false and misleading statements concerning ValueClick’s sales growth, record reported revenues and earnings, strong business fundamentals, and upward earnings guidance. As a result of these false and misleading statements, ValueClick’s stock rose precipitously, reaching a Class Period high of over $35 per share by May 2007. Meanwhile, defendants concealed from investors that ValueClick’s stellar financial performance was due in large part to illegal practices, which when halted (voluntarily or through a regulatory enforcement action) would adversely impact ValueClick’s lead-generation business, the Company’s revenues and its profits
On May 18, 2007, the Company announced that it was the target of an investigation by the FTC into potential FTC Act or CAN-SPAM Act violations. Yet defendants maintained that ValueClick was in full compliance with the law and that the FTC investigation would not negatively impact the Company’s forward financial performance. Nonetheless, according to the complaint, the Company’s promotional lead-generation business dropped off dramatically during May and June of 2007, significantly impacting the Company’s ability to achieve its inflated financial targets.
Then, on July 30, 2007, the Company reported second quarter 2007 earnings which fell short of defendants’ forecasts. The Company also lowered its forward financial guidance for the year. On this news, ValueClick’s stock plummeted over $6 per share, falling below $20 per share in intraday trading, or 42% from its Class Period high, on very high volume.
Plaintiff seeks to recover damages on behalf of all purchasers of ValueClick common stock during the Class Period (the “Class”). The plaintiff is represented by Lerach Coughlin, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Lerach Coughlin, a 180-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin lawyers have been responsible for more than $45 billion in aggregate recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more information about the firm.List your legal jobs on the LawFuel Network