NEW YORK, Nov. 14, 2014 /PRNewswire/ -- Pomerantz LLP has filed a class action lawsuit against Millennial Media, Inc. ("Millennial Media" or the "Company") ( NYSE: MM) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 14-cv-8330, is on behalf of a class consisting of all persons or entities who purchased Millennial Media securities between March 28, 2012 and May 7, 2014, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Millennial Media securities during the Class Period, you have until December 1, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Millennial Media is a digital advertising company that provides advertising services focused on the mobile computing segment, such as smartphones that run Apple, Inc.'s iOS operating system, Google, Inc.'s Android operating system, or other operating systems.
The Complaint alleges that prior to Millennial Media's IPO and throughout the Class Period, the Company touted its proprietary technology and data platform, referred to as "MYDAS," as a solution for both application developers and advertisers insofar as MYDAS and its component services allowed for both: (1) the easy and effective integration of Millennial Media advertising into mobile applications by developers; and (2) the flexible targeting and accurate reporting of advertising campaigns for advertisers. Millennial Media also claimed that the features and performance of its MYDAS platform were drawing customers and that its strategic acquisitions were enhancing the Company's existing capabilities.
On February 19, 2013, after the close of the markets, the Company issued a press release announcing revenue for the fourth quarter of 2012 of $58 million-sharply below analysts' expectations of $62.9 million. Millennial Media also gave disappointing revenue guidance for 2013 and disclosed that it would acquire Metaresolver Inc. ("Metaresolver"). Millennial Media's poor results, weak guidance, and its need to acquire Metaresolver arose out of ongoing problems with the Company's then-existing technologies, such as the MYDAS platform's inability to provide accurate and reliable records of end-users clicks and actions, which were driving clients away. In response to this partial disclosure of the true state of the Company's proprietary software and related technologies, Millennial Media's stock price fell $5.38 per share, or 37.54 percent, to close at $8.95 per share on February 20, 2013.
On May 7, 2014, after the markets had closed, Millennial Media issued a press release reporting revenue for the first quarter of 2014 below analysts' projections and dour revenue guidance for the coming quarter of between $70 million and $75 million, well below analysts' projections of $96.4 million. Additionally, the Company revealed that its Chief Financial Officer, Michael B. Avon, would step down from his role as of July 1, 2014 to "pursue other career interests." In response to the disclosure of the true state of the Company's competitive position, low revenue visibility, poor outlook for growth and the deleterious effects of its weak and underdeveloped technology on its prospects, Millennial Media's stock price fell $1.99 per share, or 37.20 percent, to close at $3.36 per share following the next trading session on May 8, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP