Case Page

 

Case Status:    ONGOING    
On or around 08/01/2016 (Ongoing date of last review)

Filing Date: May 04, 2015

According to the law firm press release, Endurance provides cloud-based platform solutions for small and medium-sized businesses. The Complaint alleges that defendants made false and/or misleading statements and/or failed to disclose to investors: (1) that the Company overstated its 2014 Average Revenue per Subscriber and organic growth rate; (2) that the Company engaged in irregular accounting practices related to its international business; and (3) that, as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On April 28, 2015, Gotham City Research LLC published a report alleging, among other things, that 40% to 100% of Endurance’s reported profits were suspect and that the Company’s normalized profits would be insufficient to cover its interest expenses. The report alleged that the Company uses related parties to inflate earnings, and that various accounting irregularities relating to the Company’s international business existed. The report also alleged that the Company’s reported organic growth rate was overstated and that 2014 Average Revenue per Subscriber (“ARPS”) had actually declined 13% when the Company’s 10-K claimed that ARPS had grown 11%. Following this news, shares of Endurance declined over 10%, to close on April 28, 2015, at $19.70 per share, on unusually heavy volume.

Plaintiffs filed an amended complaint on December 8, 2015. This was followed by a second amended complaint on March 18, 2016.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: EIGI
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: D. Massachusetts
DOCKET #: 15-CV-11775
JUDGE: Hon. George A. OToole, Jr
DATE FILED: 05/04/2015
CLASS PERIOD START: 11/04/2014
CLASS PERIOD END: 04/27/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Block & Leviton LLP
    155 Federal Street, Suite 1303, Block & Leviton LLP, MA 02110
    (617) 398-5600 (617) 507-6020 ·
  2. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
  3. 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 ·
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 15-CV-11775
JUDGE: Hon. George A. OToole, Jr
DATE FILED: 03/18/2016
CLASS PERIOD START: 02/25/2014
CLASS PERIOD END: 02/29/2016
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Block & Leviton LLP
    155 Federal Street, Suite 1303, Block & Leviton LLP, MA 02110
    (617) 398-5600 (617) 507-6020 ·
  2. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
No Document Title Filing Date