NEW YORK, April 9, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Care.com, Inc. ("Care.com" or the "Company") (NYSE:CRCM) of the June 3, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Care.com stock or options between March 27, 2015 and April 1, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/CRCM. There is no cost or obligation to you.
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 email@example.com.
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The lawsuit has been filed in the U.S. District Court for the District of Massachusetts on behalf of all those who purchased Care.com common stock between March 27, 2015 and April 1, 2019 (the "Class Period"). The case, Toussaint v. Care.com, Inc. et al, No. 19-cv-10628 was filed on April 3, 2019, and has been assigned to Judge Mark L. Wolf.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that the Company did not effectively screen member information "against various databases and other sources for criminal or other inappropriate activity."
On March 8, 2019, after market close, The Wall Street Journal published an investigative piece about the Company which alleged, among other things, that the Company has repeatedly failed to screen child caregivers and indicate whether they have criminal backgrounds or not; the piece reveals that failing to take such safety precautions has led directly to the deaths of multiple infants left under the care of extremely negligent babysitters.
On this news, the Company's stock price fell from $23.41 per share on March 8, 2019 to $20.48 per share on March 11, 2019—a $2.93 or 12.52%
Then, on March 31, 2019, the Wall Street Journal reported that "hundreds of daycare 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.
On this news, the Company's stock price fell from $19.76 per share on March 29, 2019 to $18.45 per share on April 1, 2019—a $1.21 or 6.43% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Care.com's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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