NEW YORK, May 22, 2014 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz, LLP announces that a class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of all purchasers of the securities of Blucora, Inc. ("Blucora" or the "Company") (Nasdaq:BCOR) between November 5, 2013, and February 20, 2014, inclusive (the "Class Period").
The complaint alleges that throughout the Class Period, defendants misrepresented and/or failed to disclose that: (1) Blucora's main web properties were tied to malware, viruses and browser hijackers that attack computers, (2) Blucora's search volumes had been boosted due to a rise in illicit search traffic, and (3) a significant portion of the Company's traffic was derived from malware, illicit traffic, pirated content and click fraud. The Company concealed the fact that their relationship with Google was damaged and that Google was unlikely to renew its contract with Blucora on the same terms as its prior agreement.
On February 18, 2014, Seeking Alpha published a research report authored by Gotham City Research LLC which claimed that Blucora would lose over 60% of its revenue in coming quarters as "Google realizes it is better off without [Blucora]," that at least half of the Company's traffic "is derived from malware, click fraud, illicit traffic (e.g. child pornography), and otherwise suspect traffic," and that the Company "is likely to receive scrutiny from Google as well as advertisers, and regulatory agencies." On this news, the price of Blucora shares fell $2.00, or 8.44%, from a closing price of $23.70 on February 14, 2014, to close at $21.70 per share on February 18, 2014.
After the market closed on February 20, 2014, the Company announced that InfoSpace LLC, a subsidiary of Blucora, had only partially renewed its Google Services Agreement. The Company disclosed that, under the new agreement, InfoSpace will no longer display advertisements provided by Google's AdSense for Search for search traffic that originates from mobile and tablet devices.
On this additional news, the price of Blucora shares dropped $1.77, or 8.2%, from a closing price of $21.57 on February 20, 2014, to close at $19.80 per share on February 21, 2014.
Wolf Haldenstein has represented individual and institutional investors for many years, serving as lead counsel in numerous cases in United States federal and state courts. Please visit the Wolf Haldenstein website (http://www.whafh.com) for more information about the firm.
If you are a shareholder of Blucora, Inc. (Nasdaq:BCOR) who suffered a material loss on shares purchased within the class period and would like additional information concerning your rights in this matter, please contact us immediately:
Gregory Stone, Director of Case and Financial Analysis
Wolf Haldenstein Adler Freeman & Herz LLP
270 Madison Avenue
New York, New York 10016
Wolf Haldenstein Adler Freeman & Herz LLP did not file the original complaint against Blucora, Inc.
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Source:Wolf Haldenstein Adler Freeman & Herz LLP