Press release from Business Wire
Lieff Cabraser Announces Class Action Litigation Against Angie's List, Inc. - ANGI
Thursday, January 23, 2014
Lieff Cabraser Announces Class Action Litigation Against Angie's List, Inc. - ANGI09:00 EST Thursday, January 23, 2014
SAN FRANCISCO (Business Wire) -- The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of all purchasers of the common stock of Angie's List, Inc. (“Angie's List” or the “Company”) (Nasdaq:ANGI) between February 14, 2013 and October 23, 2013, inclusive (the “Class Period”).
If you purchased the common stock of Angie's List during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 21, 2014. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Angie's List investors who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Angie's List Securities Class Litigation
The action charges Angie's List and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Angie's List, based in Indianapolis, Indiana, operates a website that provides customer referrals to local service providers across the U.S. and, using a subscription-based business model, provides reviews of local service providers purportedly authored by other locals.
The action alleges that during the Class Period, Angie's List issued materially false and misleading statements regarding the strength of the Company's business model and its financial performance and future prospects and failed to disclose the following adverse facts: (i) Angie's List had increased its reliance on providing free memberships in order to artificially boost its subscriber figures; (ii) that contrary to Angie's List's repeated Class Period statements that online reviews on its website were unbiased, the Company was consistently drawing more than half of its revenues from the service provider side of its business; (iii) Angie's List sometimes charged service providers hundreds of dollars for “hot leads” and those costs were being passed along to Angie's List subscribers; (iv) that the legitimacy of the service provider side of Angie's List's business model was called into question by the Company's practice of forcing service providers to pay high fees to be listed as highly rated service providers; and (v) that because the Company did not vet the service providers listed and recommended on its website, many consumers were questioning the value of its recommendations.
The action alleges that through a series of disclosures between September 30, 2013 and October 24, 2013, investors learned that: (i) Angie's List's Chief Technology Officer had been terminated – without explanation or naming a replacement; (ii) Angie's List had slashed membership prices by roughly 75% in several key markets, in an attempt to attract new members; (iii) the Company's third quarter 2013 financial results were much weaker than defendants had led the market to expect, and the same declining business metrics had forced Angie's List to issue weaker fourth quarter 2013 financial guidance; and (iv) certain analysts were questioning the Company's ability to meet its future financial obligations. On news of these disclosures, the price of Angie's List common stock declined from $22.49 per share on September 30, 2013 to close at $14.64 on October 24, 2013, a decline of nearly 35%.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last ten consecutive years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabraser.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Source/Contact for Media Inquiries Only:
Lieff Cabraser Heimann & Bernstein, LLP
Sharon M. Lee, 1-800-541-7358