NEW YORK, Sept. 19, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of Florida on behalf of all persons who purchased or otherwise acquired the securities of Bankrate, Inc. ("Bankrate" or the "Company") (NYSE:RATE) during the period between March 1, 2013 and September 15, 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").
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company's business, operations and prospects. The Complaint alleges that Defendants concealed from the investing public that: (i) the Company's financial statements contained errors related to the improper recognition of revenues and expenses; (ii) the Company lacked adequate internal controls over financial reporting; and (iii) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times. As a result of Defendants' alleged false and misleading statements, the Company's stock traded at artificially inflated prices during the Class Period.
On September 15, 2014, the Company disclosed that the Securities and Exchange Commission (the "SEC") is conducting a formal investigation of the Company's financial reporting, focusing mainly on the first two quarters of 2012. The Company also announced that its financial results for 2011, 2012 and 2013 should no longer be relied upon pending completion of an internal review. The Company's Chief Financial Officer, Edward J. DiMaria, resigned in the wake of this disclosure.
On this news, the price of the Company stock fell $1.90 per share, or almost 14 percent, from its closing price of $13.82 on September 12, 2014, to close at $11.92 per share on September 15, 2014, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than November 17, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston