According to a press release dated August 2, 2011, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing sponsorship cancellations due to extended legal and regulatory reviews; (ii) that the Company’s customers, including several consumer product companies, were delaying advertising on the Company’s website as a result of smaller advertising budgets; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On July 18, 2011, the Company announced its preliminary second quarter financial results and lowered its financial guidance for 2011. In reaction to the Company’s announcement, the price of the Company’s stock fell $14.01 per share, or 30%, to close at $32.48 per share, on extremely heavy trading volume.
On November 7, 2011, the Court issued an order appointing the Lead Plaintiff and approving of lead counsel. On February 14, 2012, the Lead Plaintiff filed a Consolidated Amended Complaint.
On January 2, 2013, the Court issued an Order granting the Defendants' motions to dismiss. Plaintiffs were given leave to file a Second Amended Complaint. Plaintiffs did not file an amended complaint. As such, this case was closed on April 9.