NEW YORK, Nov. 23, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Marchex, Inc. (“Marchex” or the “Company”) (NASDAQ:MCHX) securities from March 19, 2014 through September 18, 2014, inclusive (the “Class Period”). The lawsuit seeks to recover damages for Marchex investors under the federal securities laws.
If you purchased Marchex securities during the Class Period, you may, no later than January 18, 2016, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you want more information about the Marchex Securities Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email firstname.lastname@example.org.
The complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements to investors and/or failed to disclose that: (1) Allstate sought to switch its business with Marchex to a fixed- fee basis from payments made for each call; (2) consequently, Marchex’s revenue would be negatively impacted; and (3) as a result of the foregoing, defendants public statements about Marchex’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On September 18, 2014, the Company issued a press release entitled, “Marchex Updates 2014 Guidance.” The Company stated, in relevant part, that it, “lower[ed] its 2014 call-driven revenue outlook ... [a]s a result of revised commitments from Allstate in the fourth quarter.” The Company further stated that Allstate sought to switch its business with Marchex to a fixed-fee basis from payments made for each call. Following this news, Marchex shares fell by $3.38 per share, or over 45%, to close at $4.07 per share on September 18, 2014, on unusually heavy volume.
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Source: Morgan Securities Law