A class action complaint has been filed in the United States District Court, Northern District of Illinois against FTD and certain officers of the Company on behalf of purchasers of FTD's securities between March 13, 2015 and March 14, 2017, inclusive (the "Class"), alleging violations of the Securities Exchange Act of 1934.
The complaint alleges that FTD and certain of its officers made a series of materially false and misleading statements to investors during the Class Period. Specifically, the defendants are alleged to have made materially false and misleading statements and/or failed to disclose that: (i) FTD's financial statements contained errors relating to the assessment of cross-border indirect taxes; (ii) in turn, the Company lacked effective internal controls over financial reporting; (iii) FTD had overstated the benefits of the Provide acquisition; and (iv) as a result of the foregoing, FTD's public statements were materially false and misleading at all relevant times.
On March 14, 2017, FTD announced that it would restate its previously issued consolidated financial statements for the years ended December 31, 2015 and 2014 and for the quarters in the years ended December 31, 2015 and 2016 due to errors relating to "the assessment of cross-border indirect taxes." Additionally, the Company announced a net loss for the fourth quarter of 2016, "primarily due to goodwill impairment charges related to the Provide Commerce segment of $84.0 million."
According to the complaint, upon the release of the after-hours news on March 14, 2017, the price of FTD common stock fell $5.54 per share, or 23.69% to close at $17.85 per share on March 15, 2017.
If you are a member of the proposed Class, you may move the court no later than May 19, 2017 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Jason A. Uris
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
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SOURCE Kaplan Fox & Kilsheimer LLP