Morgan & Morgan Announces That a Class Action Lawsuit Has Been Filed Against Marchex, Inc. – MCHX
November 23 2015 - 12:24PM
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
info@morgansecuritieslaw.com. 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.
About Morgan & Morgan Morgan & Morgan is
one of the nation's largest 200 law firms. In addition to
shareholder rights, the firm also practices in the areas of
antitrust, personal injury, consumer protection, overtime, and
product liability. All of the Firm’s legal endeavors are
rooted in its core mission: provide investor and consumer
protection and always fight “for the people.”
Attorney advertising. Prior results do not guarantee a similar
outcome.
Morgan & Morgan
Peter Safirstein, Esq.
28 West 44th Street
Suite 2001
New York, NY 10036
1-800-732-5200
info@morgansecuritieslaw.com
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