Robbins Arroyo LLP: Marchex, Inc. (MCHX) Misled Shareholders According to a Recently Filed Class Action
November 18 2015 - 4:29PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed in the U.S. District Court for the
Southern District of New York. The complaint alleges that officers
and directors of Marchex, Inc. (NASDAQGS: MCHX) violated the
Securities Exchange Act of 1934 between March 19, 2014 and
September 18, 2014, by making materially false and misleading
statements about Marchex's business prospects. Marchex operates as
a mobile advertising technology company in the United States and
Canada.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/marchex-inc
Marchex Lowers Future Guidance
According to the complaint, from March through August 2014,
Marchex issued a series of press releases touting the company's
financial results and predicting a positive business outlook.
Marchex stated, "Our Call Analytics platform is enabling Marchex to
provide unique intelligence and insight around calls at the same
time mobile and call-based advertising is emerging as a major theme
for advertisers. As a result, we are further integrating with some
of our largest advertises and landing new customers."
However, the complaint alleges that Marchex failed to disclose
that Allstate, one of its key customers, sought to switch its
business with Marchex to a fixed-fee basis from payments made for
each call, and that consequently, Marchex's revenue would be
negatively impacted. In a press release issued on September 18,
2014, Marchex lowered future guidance due to this shift in
Allstate's payment model. On this news, Marchex stock fell $3.38
per share, or over 45%, to close at $4.01 per share on September
18, 2014.
Marchex Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves and the companies in which they
have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20151118006689/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com
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