According to the law firm press release, Tremor Video, headquartered in New York, New York, is a provider of technology-driven video advertising solutions for advertisers and agencies and publisher partners in the United States and internationally.
Tremor Video filed with the SEC a Registration Statement which, following several amendments and being declared effective by the SEC, was used to conduct the IPO on June 27, 2013. The complaint alleges that the Registration Statement was negligently prepared and, as a result, contained untrue statements of material facts or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, defendants failed to disclose the following material facts which existed at the time of the IPO: (a) that the online advertising market had materially shifted towards mobile browsing, as opposed to desktop browsing, where the Company was at a significant disadvantage to its competitors; and (b) that the Company was losing sales to competitors as a result of its inferior mobile browsing capabilities.
The IPO was successful for the Company and the underwriter defendants, who sold 7.5 million shares of Tremor Video common stock to the public at $10 per share, raising approximately $75 million in gross proceeds for the Company. Yet by the time of the filing of this action, Tremor Video stock was trading at approximately $4 per share, a 60% decline from the IPO price.
On February 7, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel. Lead plaintiff filed an amended complaint on April 22.
On March 5, 2015, the Court issued an Order granting Defendants' motion to dismiss. The Clerk of Court was directed to enter judgment and close this case.