NEW YORK, May 15, 2014 /PRNewswire/ -- Pomerantz LLP announces the filing of a class action lawsuit against Blucora, Inc. ("Blucora" or the "Company")(NASDAQ: BCOR) and certain of its officers. The class action, filed in United States District Court, Western District of Washington, and docketed under 2:14-cv-00720-JLR, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Blucora between November 5, 2013 and February 20, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Blucora securities during the Class Period, you have until July 14, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Blucora, Inc. operates a portfolio of Internet businesses in the Unites States and internationally. The company operates through three segments: Search, Tax Preparation, and E-Commerce.
The Complaint alleges, that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (1) Blucora's main web properties were tied to malware, viruses and browser hijackers that attack computers; (2) Blucora's search volumes had been boosted due to a rise in illicit search traffic; (3) a significant portion of the Company's traffic was derived from malware, illicit traffic, pirated content and/or click fraud, including, involuntary clicks, artificial clicks and illicit clicks; (4) that the Company's relationship with Google was impaired and that Google was unlikely to renew its contract with the Company on the same terms as its prior agreement; and (5) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On February 18, 2014, Gotham City Research published a research report on the financial website Seeking Alpha entitled "Blucora (i.e. Infospace): Worse Than Blinkx Plc & Babylon Ltd." The report alleged that, among other things: (i) " 60% of Blucora's revenue will evaporate in coming quarters, as Google realizes it is better off without Blucora"; (ii) "at least 50% of Blucora's traffic is derived from malware, click fraud, illicit traffic (e.g. child pornography), and otherwise suspect traffic"; and (iii) "the Company is likely to receive scrutiny from Google, Inc. - one of Blucora's major customers - as well as advertisers, and regulatory agencies."
On this news, Blucora shares declined $2.00 per share, over 8.43%, to close at $21.70 per share on February 18, 2014.
On February 20, 2014, the Company filed a Form 8-K with the Securities and Exchange Commission (SEC), announcing that InfoSpace had only partially renewed its Google Services Agreement with Google. The Company disclosed that under the new agreement, InfoSpace will continue to display ads provided by Google's AdSense for search traffic that originates from desktops and laptops, but will no longer display those ads for search traffic that originates from mobile and tablet devices.
On this news, Blucora shares declined $1.77 per share or over 8.20%, to close at $19.80 per share on February 21, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP