NEW YORK, Oct. 23, 2014 /PRNewswire/ -- Harwood Feffer LLP (www.hfesq.com) is investigating potential claims against the board of directors of Bankrate, Inc. ("Bankrate" or the "Company") (NYSE: RATE), concerning whether the board has breached its fiduciary duties to shareholders.
On September 15, 2014, the Company disclosed in a public filing that the U.S. Securities and Exchange Commission (the "SEC") is conducting a non-public formal investigation of the Company's financial reporting during 2012. The investigation is examining, among other things: (a) the timing and classification of certain entries relating to expenses, expense accruals and credits; (b) an entry originally made in the third quarter of 2011 establishing an allowance that was ultimately reversed in the first quarter of 2012; and (c) revenue and expense adjustments in May 2012 that were reversed in June 2012. The investigation is seeking to determine whether accounting entries may have improperly impacted the Company's reported results. Also on September 15, 2014, the Company announced to resignation of its Chief Financial Officer.
In connection with the foregoing, on September 17, 2014, a class action was filed in the U.S. District Court for the Southern District of Florida, No. 9:14-cv-81183-KLR, alleging violations of Sections 10(b) and 20(a) of the Exchange Act. Bankrate shares are currently trading at their lowest price since 2012 and have lost nearly 20% of their value since the revelations of September 15, 2014.
Our investigation concerns whether the Company board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing.
If you own Bankrate shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact:
Robert I. Harwood, Esq.
Benjamin I. Sachs-Michaels, Esq.
Harwood Feffer LLP
488 Madison Avenue
New York, New York 10022
Phone Numbers: (877) 935-7400
Follow us on Twitter: @HarwoodFeffer
Harwood Feffer has been representing individual and institutional investors for many years, serving as lead counsel in numerous cases in federal and state courts. Please visit the Harwood Feffer LLP website (http://www.hfesq.com) for more information about the firm.
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