BOSTON, Jan. 17, 2013 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving Bazaarvoice, Inc. ("Bazaarvoice" or the "Company") (NASDAQ : BV ) following the public announcement that the Company is under investigation by the Department of Justice ("DOJ"). The Company, which went public in February 2012, is being investigated by the DOJ for alleged misdeeds arising from the Company's June 2012 acquisition of PowerReviews Inc. ("PowerReviews"). The DOJ has said that the $168.2 million transaction substantially lessened competition in the market for product ratings and reviews platforms in the United States, resulting in higher prices to customers and diminished innovation in the field.
According to Bill Baer, Assistant Attorney General in charge of the Department of Justice's Antitrust Division, "Bazaarvoice bought PowerReviews knowing that it was acquiring its most significant rival and hoping to benefit from diminished price competition. Without competitive pressure from PowerReviews, Bazaarvoice will be able to increase prices to retailers and manufacturers for its product ratings and reviews platform. This lawsuit seeks to prevent one firm from dominating the product rating and review platforms market, and demonstrates that transactions that are not reported to us are not immune from scrutiny."
News of the DOJ investigation shocked the market and the Company's stock price fell by more than 25% in less than a week – dropping from $9.00 per share on January 10, 2013 to close at $6.78 per share on January 16, 2013, trading at its highest volume since the Company's initial public offering.
Block & Leviton's investigation seeks to determine, among other things, whether Bazaarvoice or its officers and directors have violated the federal securities laws. If you have any information relevant to this investigation, or have questions about your legal rights, please contact attorney Steven Harte of Block & Leviton LLP at (617) 398-5600 or email him at Steven@blockesq.com.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 50 years.
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SOURCE Block & Leviton LLP