Gainey McKenna & Egleston Announces a Class Action Lawsuit has Been Filed Against Marchex, Inc. (MCHX)
November 18 2015 - 7:00PM
Gainey McKenna & Egleston 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 all persons or entities that
purchased the securities of Marchex, Inc. (“Marchex” or the
“Company”) (Nasdaq:MCHX) between March 19, 2014 through September
18, 2014 (the “Class Period”), alleging violations of the
Securities Exchange Act of 1934 against the Company and certain of
its officers (the “Complaint”).
The Complaint alleges that 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.
On September 18, 2014, the Company reported to
investors the need to lower future guidance as a result of a shift
in one of its key customer’s payment model. 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. On this news, shares of the
Company fell by $3.38 per share, or over 45%, to close at $4.01 per
share on September 18, 2014, on unusually heavy volume.
If you wish to serve as lead plaintiff, you must
move the Court no later than January 18,
2016. 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
tjmckenna@gme-law.com or gegleston@gme-law.com.
This may be considered attorney advertising in some
jurisdictions and prior results do not guarantee a similar outcome
with respect to any future matter.
Please visit our website at http://www.gme-law.com
for more information about the firm.
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