Case Page

 

Case Status:    DISMISSED    
On or around 11/05/2014 (Court's order of dismissal)

Filing Date: May 12, 2014

According to the law firm press release, Blucora operates internet search, online tax preparation and e-commerce businesses in the United States and internationally. The Company's search business, InfoSpace, provides search technology, aggregated content, and search services to its distribution partners and directly to consumers.

The complaint alleges that, throughout the Class Period, defendants issued false and/or misleading statements and/or failed to disclose material adverse facts concerning Blucora's business, operations, and prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) Blucora's main web properties were tied to malware, viruses, and browser hijackers that attack computers; (2) Blucora's search volumes had been boosted due to a rise in illicit search traffic; (3) a significant portion of Blucora's traffic was derived from malware, illicit traffic, pirated content and/or click fraud, including, involuntary clicks, artificial clicks, and illicit clicks; and (4) that Blucora's relationship with Google was impaired and that Google was unlikely to renew its contract on the same terms as its prior agreement.

On February 18, 2014, Gotham City Research LLC published a research report stating, among other things: (i) "+60% of [Blucora]'s revenue will evaporate in coming quarters, as Google realizes it is better off without [Blucora]"; (ii) "[a]t least 50% of [Blucora]'s traffic is derived from malware, click fraud, illicit traffic (e.g., child pornography), and otherwise suspect traffic"; and (iii) Blucora "is likely to receive scrutiny from Google, Inc. – one of Blucora's major customers – as well as advertisers, and regulatory agencies."

On this information, Blucora stock prices declined $2.00 per share, over 8%, to close at $21.70 per share on February 18, 2014, on unusually heavy volume. After the market closed on February 20, 2014, Blucora filed a Current Report on Form 8-K announcing that Google had only partially renewed its Google Services Agreement. On this news, shares of Blucora declined $1.77 per share, over 8%, to close at $19.80 per share on February 21, 2014, on unusually heavy volume. This resulted in significant losses to class members.

On August 29, 2014, the Court issued an Order appointing lead plaintiff and approving lead counsel.

On November 4, 2014, the Court ordered this case dismissed without prejudice pursuant to a stipulation by the parties.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BCOR
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 #: 14-CV-00706
JUDGE: Hon. Robert S. Lasnik
DATE FILED: 05/12/2014
CLASS PERIOD START: 11/05/2013
CLASS PERIOD END: 02/20/2014
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
  3. Scott + Scott LLP (NY)
    405 Lexington Avenue, 40th Floor, The Chrysler Building, Scott + Scott LLP (NY), NY 10174
    (212) 223-6444 (212) 223-6444 ·
  4. Tousley Brain Stephens PLLC
    1700 Seventh Avenue, Suite 2200 , Tousley Brain Stephens PLLC, WA 98101
    206.682.5600 206.682.5600 · contact@tousley.com
No Document Title Filing Date