ValueClick, Inc. Sued by Investor
SAN DIEGO and WESTLAKE VILLAGE, Calif., Sept. 27, 2013 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP announce that an investor of ValueClick, Inc. (NASDAQ: VCLK) has filed a complaint in the U.S. District Court for the Central District of California. The complaint alleges that the company and certain of its officers violated the Securities Exchange Act of 1934 from February 14, 2013 to August 1, 2013 (the "Class Period"). ValueClick offers products and services that enable marketers to advertise and sell their products and services primarily through online and mobile display advertising, affiliate marketing, and comparison shopping channels.
ValueClick Accused of Making False and Misleading Statements
According to the complaint, ValueClick issued materially false and misleading statements and/or failed to disclose material facts about the company's prospects, organic growth, and its ability to integrate recently acquired companies. Specifically, the Complaint alleges that certain company executives knew but concealed from ValueClick shareholders during the Class Period that: (i) ValueClick's recent revenue growth and profits were primarily attributable to acquired revenue streams rather than organic growth; (ii) ValueClick's Media segment revenues and profits were not growing because of the company's failure to effectively integrate the Dotomi, Inc. and Greystripe, Inc. acquisitions; and (iii) ValueClick materially overstated the income and understated the costs of a note receivable. As a result of these misrepresentations, ValueClick shares traded at artificially inflated prices during the Class Period.
ValueClick Stock Drops on Flat Media Sales and Revised Third Quarter Guidance
According to the complaint, on August 1, 2013, ValueClick announced its financial results for the second quarter ended June 30, 2013, reporting flat Media segment sales and below expected adjusted earnings. For the quarter, ValueClick reported adjusted earnings of $0.39 per share on revenue of $159.8 million, rather than the adjusted earnings of between $0.38 and $0.40 per share on revenue of $164 million to $175.3 million the company had led investors to expect. Further, citing continued muted sales in the company's Media segment, ValueClick lowered its estimated third quarter profits per share from $0.43 per share on revenues of $180 million, to $0.39 to $0.40 per share on revenues of $164 million to $168 million. The lawsuit asserts that this adverse information caused the price of ValueClick's stock to fall approximately 15%, or $3.73 per share, to close at $21.37 per share on August 2, 2013.
If you invested in ValueClick and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to http://www.robbinsarroyo.com.
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SOURCE Robbins Arroyo LLP