SAN DIEGO and BROOKLYN, N.Y., May 18, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Etsy, Inc. (NASDAQGS: ETSY) has filed a federal securities fraud class action complaint in the U.S. District Court for the Eastern District of New York. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between April 16, 2015 and May 10, 2015. Etsy operates online and offline marketplaces to buy and sell handmade items, vintage goods, and craft supplies.
View this information on the law firm's Shareholder Rights Blog:
Etsy Misrepresents Its Business Practices
According to the complaint, defendants made materially false and misleading statements and failed to disclose material adverse facts about Etsy's business, operational and compliance policies. Specifically, defendants failed to disclose that: (1) more than 5% of all merchandise for sale on Etsy's website may be counterfeit or constitute trademark or copyright infringement; and (2) other brands are increasingly pursuing sellers on Etsy for trademark and copyright infringement, jeopardizing the company's listing fees and commissions.
On May 11, 2015, Bloomberg reported that an equity analyst at Wedbush Securities issued a note downgrading Etsy to "underperform," citing questionable seller practices. On this news, shares of Etsy fell $1.86, or over 8%, to close at $20.85 per share on May 11, 2015.
Etsy Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP