Case Page

 

Case Status:    ONGOING    
On or around 10/28/2016 (Ongoing date of last review)

Filing Date: August 07, 2015

According to the law firm press release, Constant Contact originated as an email marketing platform for small and midsize organizations. The Company has progressed to provide a suite of online marketing tools that are designed for small organizations, including small businesses, associations and non-profits.

The complaint alleges that the Company and its executives violated the federal securities laws by issuing misleading statements during the Class Period regarding Constant Contact’s business operations and financial performance. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company’s gross customer additions were lower than expected; (2) that the Company was experiencing negative trends in customer conversion rates; (3) that the Company was steering new customers towards the lowest-priced packages; (4) that, as a result, the Company’s revenues for 2015 would be below expectations; and (5) that, as a result of the foregoing, Defendants’ statements about Constant Contact’s business operations and prospects were false and misleading and/or lacked a reasonable basis.

On July 23, 2015, after the market closed, the Company disclosed earnings results for the second quarter of 2015 with a weak third quarter outlook. Constant Contact experienced low trial-to-conversion rates in April and May of 2014 and a significant swing in product mix with approximately 80% of new customers choosing the lowest-priced Email package instead of higher-priced offerings. On this news, shares of Constant Contact declined $3.35 per share, over 11%, to close on July 24, 2015, at $26.18 per share, on unusually heavy volume.

On September 21, 2016, the Court issued an Order appointing Lead Plaintiff and Counsel.

COMPANY INFORMATION:

Sector: Services
Industry: Advertising
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CTCT
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-13114
JUDGE:
DATE FILED: 08/07/2015
CLASS PERIOD START: 10/23/2014
CLASS PERIOD END: 07/23/2015
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Prongay & Murray LLP
    1925 Century Park East, Suite 2100 , Glancy Prongay & Murray LLP, CA 90067
    (310) 201-9150 (310) 432-1495 ·
  2. Hutchings, Barsamian, Mandelcorn & Zeytoonian, LLP

    ·
  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