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Case Status:    DISMISSED    
On or around 04/01/2014 (Court's order of dismissal)

Filing Date: August 27, 2013

According to the law firm press release, 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.

On January 13, 2014, the Court issued an Order consolidating cases, appointing lead plaintiff, and approving lead counsel.

On March 28, 2014, the parties filed a Stipulation voluntarily dismissing this action.

COMPANY INFORMATION:

Sector: Services
Industry: Hotels & Motels
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EXPE
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Washington
DOCKET #: 13-CV-01535
JUDGE: Hon. Mary Alice Theiler
DATE FILED: 08/27/2013
CLASS PERIOD START: 07/27/2012
CLASS PERIOD END: 07/25/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman Sobol Shapiro LLP (New Seattle)
    1918 Eighth Ave. Suite 3300, Hagens Berman Sobol Shapiro LLP (New Seattle), WA 98101
    206.623.7292 206.623.0594 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date