Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against MaxPoint Interactive, Inc.

Aug 31, 2015, 22:00 ET from Robbins Geller Rudman & Dowd LLP

NEW YORK, Aug. 31, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/maxpointinteractive/) today announced that a class action has been commenced in the United States District Court for the  Southern District of New York on behalf of purchasers of the common stock of MaxPoint Interactive, Inc. ("MaxPoint" or the "Company") (NYSE: MXPT) pursuant and/or traceable to the Company's initial public offering (the "IPO") on or about March 6, 2015, seeking to pursue remedies under the Securities Act of 1933 (the "Securities Act").

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, Samuel H. Rudman or David Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com.  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.rgrdlaw.com/cases/maxpointinteractive/.  Any member of the putative 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 MaxPoint, certain of its executives and the underwriters of its IPO with violations of the Securities Act.  MaxPoint is a provider of business intelligence and marketing automation software services designed to enable national brands to drive local in-store sales.

On March 6, 2015, MaxPoint completed the IPO, selling more than 6.5 million shares of MaxPoint common stock to the public at $11.50 per share pursuant to a Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the IPO, raising more than $74.75 million.

The complaint alleges that the Registration Statement used to conduct the IPO contained false and misleading statements regarding the Company's financial condition, business and prospects.  According to the complaint, MaxPoint failed to disclose that it was deriving two-thirds of its sales from just 50 customers at the time of the IPO, and that as a result of this high customer concentration, it was more exposed to those 50 customers' budgetary proclivities and promotional activities.  The complaint also alleges that the Company had been signing smaller customers with smaller advertising budgets in the months leading up to the IPO, and that as a result, MaxPoint's sales growth was declining at the time of the IPO, which would have a material impact on MaxPoint's profitability.  Since the IPO, the price of MaxPoint common stock has declined approximately 60% and is currently trading at below $5.00 per share.

Plaintiff seeks to recover damages on behalf of all purchasers of MaxPoint common stock pursuant and/or traceable to the Company's IPO (the "Class").  The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation.  The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014.  Please visit http://www.rgrdlaw.com/cases/maxpointinteractive for more information.

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SOURCE Robbins Geller Rudman & Dowd LLP



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