SAN DIEGO and MORRISVILLE, N.C., Sept. 2, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Southern District of New York. The complaint alleges that officers and directors of MaxPoint Interactive, Inc. (NYSE: MXPT) violated the Securities Act of 1933. The class action is filed on behalf of those who purchased MaxPoint securities pursuant to the company's Registration Statement and Prospectus issued in connection with its initial public offering ("IPO") on March 6, 2015. MaxPoint Interactive provides digital advertising services in the United States.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/maxpoint-interactive-inc-sept-2015
MaxPoint Fails to Disclose Material Facts in its Registration Statement
According to the complaint, MaxPoint's Registration Statement contained untrue statements of material facts and was not drafted in accordance with the rules governing its preparation. Specifically, the Registration Statement failed to disclose that MaxPoint was wholly dependent upon its top 50 customers alone for two-thirds of its sales, leaving the company more exposed to the budgetary constraints and spending priorities of just 50 customers, resulting in lower trailing twelve-month average spending per customer growth. Further, MaxPoint's new customers during the first half of 2015 started with smaller budgets and were smaller companies than many of the enterprise customers who had been signed prior to the IPO.
Although MaxPoint was required to disclose that it was more exposed to customers' budgetary proclivities due to high customer concentration and that it had been signing smaller customers in the months leading up to the IPO, its Registration Statement contained no such disclosures. During its IPO, MaxPoint sold 6.5 million shares of common stock to the public at $11.50 per share, raising $74.75 million in gross proceeds. However, it closed at $4.51 per share on September 1, 2015, an approximately 60% decline from the IPO price.
MaxPoint 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, [email protected], or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and 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. For more information, please go to www.robbinsarroyo.com.
Attorney Advertising. Past results do not guarantee a similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
[email protected]
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo - http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
SOURCE Robbins Arroyo LLP
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article