Science & Technology
Science and TechnologyScience and Technology 
Tue, August 16, 2011
Mon, August 15, 2011
Seattle-Based Hagens Berman Files Class-Action Lawsuit Against Motricity, Inc.
SEATTLE--([ BUSINESS WIRE ])--Seattle-based Hagens Berman Sobol Shapiro LLP today announced that it has filed a class-action lawsuit against Motricity Inc. (NASDAQ:MOTR) on behalf of investors for potential violations of Federal securities laws, including allegations of issuing materially false and misleading statements to investors.
Investors who purchased Motricity common stock between June 18, 2010, and Aug. 9, 2011, inclusive (the aClass Perioda), or through the companya™s June 17, 2010, initial public offering are encouraged to contact the firm by calling plaintiffa™s counsel Karl Barth at 206-623-7292 or by email at [ MOTR@hbsslaw.com ]. More information is available at [ www.hbsslaw.com/motr ].
Investors wishing to serve as lead plaintiff must move the court by Oct. 11, 2011. 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 lawsuit, filed in the United States District Court for the Western District of Washington on Aug. 12, 2011, alleges that Motricity and certain of its officers and directors issued false and materially misleading statements regarding the companya™s financial results. Specifically, the complaint alleges that Motricity failed to disclose that an increase in the popularity of smartphones would hurt the companya™s sales.
Motricity released its first quarter 2011 financial results on May 3, 2011, reporting a net loss of $6.1 million. On this news, Motricitya™s stock fell 14 percent, closing at $10.99 per share on May 4, 2011, according to the complaint. On August 9, 2011, the company issued its second quarter 2011 financial results, reporting a net loss of $4.3 million. The next day, the companya™s stock opened at $2.26 per share, a decline of 50 percent, the complaint details.
The lawsuit seeks to recover damages on behalf of all purchasers of common stock of Motricity stock between June 18, 2010, and August 9, 2011.
Seattle-based Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in ten cities. Founded in 1993, the firma™s mission is to represent plaintiffs in class actions and multi-party, large-scale litigation that has the potential to protect the rights of investors, consumers, workers and the environment. The National Law Journal has rated Hagens Berman as one of the top ten plaintiffsa™ firms in the country four out of the last five years. More information about the firm is available at [ www.hbsslaw.com ] and the firma™s securities law blog is at [ www.meaningfuldisclosure.com ].