COLCHESTER, Conn., Sept. 12, 2007 LAWFUEL -The Law Newswire — On September 12, 2007, Scott+Scott, LLP, filed a class action against ValueClick, Inc.
(“ValueClick” or the “Company”) (Nasdaq:VCLK) and certain officers and directors in the U.S. District Court for the Central District of California. The action is on behalf of ValueClick common stock purchasers during the period November 1, 2006 through July 27, 2007, inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company’s business and operations and that, as a result, the price of the Company’s securities was inflated during the Class Period, thereby harming investors.
If you purchased ValueClick stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than October 16, 2007. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott ([email protected], 800/404-7770, 860/537-5537) or visit the Scott+Scott website, http://www.scott-scott.com, for more information. There is no cost or fee to you.
According to the complaint, during the Class Period, defendants made false and misleading statements regarding the Company’s revenues, sales, forward guidance and business prospects. It is alleged that, on the basis of the Company’s wayward guidance, the price of ValueClick stock became artificially inflated, rising to a price of $30.24 on April 17, 2007. However, unbeknownst to the investment community, the Company had grown its business on the basis of unsustainable and illegal marketing practices, including violations of FTC regulations.
On May 18, 2007, the Company announced the initiation of an investigation by the FTC, in which it dismissed the regulatory compliance issues and reiterated its forward guidance. As a result, the price of ValueClick stock rose on May 21, 2007, to $34.29 per share.
Then, on July 30, 2007, the Company announced the shocking news of a broad-based downturn in its business activities and prospects, including a reduction in the Company’s CY2007 financial forecasts. As a direct result, the price of ValueClick stock plummeted, losing over $5, to close at $21.01 per share, on heavy volume of over 25.4 million shares.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
CONTACT: Scott+Scott, LLP