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Robbins Umeda LLP Announces an Investigation of WebMD Health Corporation

^{Published on 2011-08-06 02:20:20 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Umeda LLP, a [ shareholder rights litigation ] firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at WebMD Health Corporation (NASDAQ: WBMD). WebMD provides health information services to consumers, physicians, and other healthcare professionals, employers, and health plans through its public and private online portals, mobile applications, and health-focused publications in the United States. The company was founded in 1995, and is headquartered in New York, New York.

If you own stock in WebMD and would like more information about your [ shareholder rights ], please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the [ shareholder information form ] on our website.

Robbins Umeda LLP's investigation focuses on whether the directors and officers of WebMD harmed the company by breaching their fiduciary duties to shareholders. In particular, the firm is investigating allegations that Chief Executive Officer Wayne T. Gattinella, and other fiduciaries at the company, issued improper statements to investors designed to artificially inflate the value of the company. Beginning on February 23, 2011, officers at the company allegedly issued positive financial statements to investors that failed to reflect adverse material facts about WebMD's numerous sponsorship cancellations, the extension of legal and regulatory laws, and declining advertisement revenue. During this time period, WebMD's Chief Financial Officer Anthony Vuolo, along with other WebMD executives, allegedly engaged in a coordinated insider trading scheme to reap $44.7 million in illegal proceeds from stock options sold while the company traded at inflated prices. On July 18, 2011, WebMD issued a press release stating that the company was forced to lower its fiscal guidance for 2011. On this news, WebMD shares fell $14.01, or 30% of their value, to close at $32.48 per share that day.

Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career [ shareholder rights attorneys ]. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to [ http://www.robbinsumeda.com ].

Press release link: [ http://www.robbinsumeda.com/shareholders-rights-blog/webmd-health-corporation/ ]

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