NEW YORK, June 28, 2014 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Blucora, Inc. ("Blucora" or the "Company") (NASDAQ: BCOR) of the July 14, 2014 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against Blucora and certain executives.
A complaint has been filed in the Western District of Washington on behalf of all persons who purchased Blucora securities between November 5, 2013 and February 20, 2014 (the "Class Period").
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
The complaint further 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; and (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.
On February 18, 2014, Gotham City Research LLC 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.
After the Gotham City report revealed Blucora's material misstatements and omissions to the market, shares of Blucora declined $2.00 per share, over 8%, to close at $21.70 per share on February 18, 2014, on unusually heavy volume.
After the market closed on February 20, 2014, the Company filed a Current Report on Form 8-K 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 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, shares of Blucora declined $1.77 per share, over 8%, to close at $19.80 per share on February 21, 2014, on unusually heavy volume.
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If you invested in Blucora stock, bonds or options between November 5, 2013 and February 20, 2014 and would like to discuss your legal rights, visit www.faruqilaw.com/BCOR. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Blucora's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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