Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Expedia, Inc.
Tuesday, August 27, 2013
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Expedia, Inc.18:52 EDT Tuesday, August 27, 2013
NEW YORK (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/expedia/) today announced that a class action has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of Expedia, Inc. (“Expedia”) (NASDAQ:EXPE) common stock during the period between July 27, 2012 and July 25, 2013 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/expedia/. Any member of the putative 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.
The complaint charges Expedia and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Expedia, together with its subsidiaries, operates as an online travel company in the United States and internationally. In 2011, Expedia split into two publicly traded companies by spinning off the TripAdvisor brand of travel sites.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects, including the impact that spinning off TripAdvisor would have on Expedia's revenues and profits. As a result of defendants' false statements and/or omissions, Expedia's stock traded at artificially inflated levels during the Class Period.
On July 25, 2013, after the close of trading, Expedia issued a press release announcing its second quarter 2013 financial results for the quarter ended June 30, 2013. Expedia's second-quarter 2013 profit fell to $71.5 million from $105.2 million a year earlier. Overall, bookings rose only 13%, well below the 19% surge the Company posted during fiscal 2012. The Company also lowered its guidance for 2013 adjusted earnings, predicting growth in the mid to high single digits. In response to this announcement, on July 26, 2013, the price of Expedia common stock declined $17.80 per share – or more than 27% – on extremely high trading volume.
According to the complaint, during the Class Period defendants misrepresented or failed to disclose the following adverse facts which were known to or recklessly disregarded by them: (a) that following the spin-off, TripAdvisor had been directing a significant amount of lucrative web traffic to Expedia pursuant to an informal strategic partnership between the two companies that inured to the benefit of Expedia and to the detriment of TripAdvisor; (b) that the lucrative web traffic directed to Expedia from TripAdvisor following the spin-off had been a material source of Expedia's outsized revenues following the spin-off; (c) that TripAdvisor would stop directing web traffic to Expedia in early 2013; and (d) that performance at the Company's Hotwire unit was failing.
Plaintiff seeks to recover damages on behalf of all purchasers of Expedia common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld