According to the law firm press release, Bankrate publishes, aggregates and distributes personal finance content on the Internet. The Company generates revenues by, among other things, connecting consumers to companies that offer financial products - such as insurance, credit cards and mortgages - by providing referrals of interested customers' contact information, or "leads," to its client companies.
Plaintiffs allege that defendants issued materially false and misleading statements or failed to disclose material facts concerning Bankrate's business and financial prospects. Specifically, the Complaint alleges that defendants misrepresented or omitted material facts about the true quality of Bankrate's insurance leads.
On October 15, 2012, the Company announced that Bankrate would not meet its publicly announced earnings expectations for third quarter 2012, due to reductions in the volume of its insurance leads as a result of their poor quality. Following this news, the price of Bankrate stock declined approximately 22%, from a closing price of $14.50 on October 15, 2012, to a closing price of $11.26 on October 16, 2012, on heavy trading volume.
An amended complaint was filed on January 21, 2014.
The parties entered into a Stipulation of Settlement on August 5, 2014. The Settlement was preliminarily approved on September 3. On November 25, the Court granted final approval of the Settlement and dismissed this case.