Science & Technology
Mon, August 22, 2011Sun, August 21, 2011Sat, August 20, 2011Fri, August 19, 2011Thu, August 18, 2011Wed, August 17, 2011Tue, August 16, 2011Mon, August 15, 2011Sun, August 14, 2011Fri, August 12, 2011Thu, August 11, 2011Wed, August 10, 2011Tue, August 9, 2011Mon, August 8, 2011Sun, August 7, 2011Sat, August 6, 2011Fri, August 5, 2011Thu, August 4, 2011Wed, August 3, 2011Tue, August 2, 2011Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Motricity, Inc.
Published in Science and Technology on Friday, August 12th 2011 at 11:57 GMT by Market Wire
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/motricity/ ]) today announced that a class action has been commenced in the United States District Court for the Western District of Washington on behalf of purchasers of Motricity, Inc. (aMotricitya) (NASDAQ:MOTR) common stock during the period between June 18, 2010 and August 9, 2011, inclusive (the aClass Perioda), and/or who acquired shares of Motricity common stock pursuant or traceable to the Companya™s June 17, 2010 initial public offering (aIPOa).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/motricity/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Motricity and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Motricity provides mobile data solutions that enable wireless carriers to deliver mobile data services to their subscribers in the United States, the United Kingdom, the Netherlands, and Singapore.
On June 17, 2010, Motricity filed a Registration Statement with the SEC to facilitate the offering of 6 million shares of Motricity common stock to the public. On June 18, 2010, Motricity announced the pricing of its IPO at $10 per share for net proceeds of $51.4 million.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companya™s business prospects and financial results. Specifically, defendants failed to disclose negative trends in Motricitya™s business, including with Motricitya™s most important customers, and represented that the Company would continue to prosper despite the increasing popularity of smartphones, which provide Internet access without Motricitya™s services. As a result of defendantsa™ false statements, Motricity stock traded at artificially inflated prices during the Class Period, reaching a high of $30.74 per share on November 9, 2010.
On May 3, 2011, Motricity issued a press release announcing its first quarter 2011 financial results. The Company reported a net loss of ($6.1) million, or ($0.15) diluted earnings per share, and revenue of $32.2 million. On this news, Motricitya™s stock dropped $1.82 per share to close at $10.99 per share on May 4, 2011. Then, on August 9, 2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million, or ($0.09) diluted earnings per share and revenue of $34.6 million. This result fell well short of Wall Streeta™s forecast. As a result of this news, Motricitya™s stock price fell, opening at $2.26 per share on August 10, 2011, a decline of 50% on huge volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Motricity common stock during the Class Period (the aClassa) and/or who acquired shares of Motricity common stock pursuant or traceable to the Companya™s June 17, 2010 IPO. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
