NEW YORK, April 5, 2019 /PRNewswire/ -- Bernstein Liebhard LLP announced today that a class action has been filed in the United States District Court for the District of Massachusetts on behalf of all persons or entities (the "Class") who purchased the common stock of Care.com, Inc. ("Care.com" or the "Company") (NASDAQ: CRCM) during the period between March 27, 2015 and April 1, 2019 (the "Class Period"). The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Care.com purports to be the world's largest online family care platform. The Company claims to "help families make informed hiring decisions" about caregivers.
The complaint alleges that defendants made materially false and misleading statements regarding the Company's vetting procedures for care providers. Specifically, plaintiffs allege that defendants misleadingly touted the Company's "proactive" screening procedures.
On March 8, 2019, a Wall Street Journal article revealed Care.com's ineffective screening procedures, reporting that care providers listed on the website "had police records…and later were accused of committing crimes while caring for customers' children or elderly relatives." Care.com's stock dropped 13% after these revelations.
On March 31, 2019, a follow-up Wall Street Journal article stated that "hundreds of day-care centers" listed as "state licensed" on the Care.com website did not appear to be, and that tens of thousands of unverified day-care center listings were scrubbed from the Care.com website just before the March 8, 2019 Wall Street Journal article was published. Care.com's stock dropped another 7% after these disclosures.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Care.com common stock during the Class Period. If you invested in Care.com common stock as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 3, 2019.
A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The Firm has been named to The National Law Journal's "Plaintiffs' Hot List" thirteen times and been listed in The Legal 500 for ten consecutive years.
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SOURCE Bernstein Liebhard LLP