According to a press release dated April 26, 2011, the complaint charges ACXM and certain of its officers and executives with violations of the the Securities Exchange Act of 1934. ACXM describes itself as “a recognized leader in marketing technology and services that enable marketers to successfully manage audiences, personalized consumer experiences and create profitable customer relationships.”
The complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects. Specifically, the complaint alleges: (i) that the Company was experiencing a significant decline in its international operations and was not operating according to plan; (ii) that the Company failed to properly and timely account for impaired assets related to its international operations; and (iii) that, as a result of the foregoing, defendants’ statements regarding the Company’s financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.
On March 30, 2011, ACXM abruptly announced that its Chief Executive Officer and President, John A. Meyer, had resigned effective March 28, 2011, and that its Chief Financial Officer, Christopher W. Wolf, would also step down in the second quarter of calendar 2011. Additionally, ACXM forecasted a weak fiscal fourth quarter, with adjusted earnings of $0.18 - $0.22 per share and revenue between $295 million and $299 million for the quarter ended March 31, 2011, compared to analyst forecasts of adjusted earnings of $0.24 per share and $303 million in revenue. ACXM also announced that it “expects to record a non-cash impairment charge in the fourth quarter of fiscal 2011 in connection with a write-down of the carrying value of goodwill and other long-lived assets associated with its international operations.”
On this news, the price of ACXM’s common stock fell 22.7%, from a closing price of $17.46 on March 29, 2011, to close at $13.50 per share on March 30, 2011, on unusually heavy trading volume.
On June 30, 2011, the Court released an order appointing of Macomb County Employees’ Retirement System as lead plaintiff and approving Robbins
Geller Rudman & Dowd LLP as the lead counsel.
On August 29, 2011, the Plaintiff filed a Notice of Voluntary Dismissal without prejudice and the Court closed the case on the same day.