According to the law firm press release, Trivago N.V. provides online hotel search platform. The Company, through its platform, offers price information, reviews, photos, booking, and other travel services. Trivago serves customers worldwide and is a subsidiary of Expedia, Inc.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company engaged in deceptive sales practices; (ii) such practices were nearly certain to bring Trivago under enhanced regulatory scrutiny; and (iii) as a result of the foregoing, Trivago’s public statements were materially false and misleading at all relevant times.
On October 27, 2017, the U.K.’s Competition and Markets Authority (“CMA”) announced that it was investigating the manner in which Trivago displays information to customers. Specifically, the CMA cited concerns about the clarity, accuracy and presentation of information on sites, which could mislead customers. The CMA said it would examine how hotels were ranked, whether results were influenced by how much commission a hotel pays over the customer’s requirements, the use of “pressure selling,” and hidden charges.
On this news, Trivago’s ADRs fell $0.36, or 4.54%, to close at $7.57 on October 27, 2017.
On January 23, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on March 30. Defendants filed Motions to Dismiss the amended Complaint on May 14. On February 26, 2019, the Court issued an Order granting Defendants' Motions to Dismiss. Lead Plaintiff filed a Notice appealing the Court's Dismissal Order on March 27.