According to the law firm press release, Expedia, Inc., 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.