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Robbins Umeda LLP Announces an Investigation of Motricity, Inc.

^{Published on 2011-08-17 16:01:41 - 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 Motricity, Inc. (NASDAQ: MOTR). 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.

If you invested in Motricity 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 Motricity harmed the company and investors by issuing materially false and misleading statements that have damaged the company's value and reputation. In particular, the firm is investigating allegations that founder and Chief Executive Officer Ryan K. Wuerch, and other fiduciaries at the company, issued improper statements to investors designed to artificially inflate the value of the company. Beginning on June 18, 2010, officials at Motricity issued statements to investors that failed to reflect adverse material facts about the company's stagnating growth rate, the impact of increased competition from smartphone providers, and declining sales and negative business trends. Also at this time, Motricity's CEO, along with other senior executives, allegedly engaged in a coordinated insider trading scheme to reap over $11 million in illicit proceeds from stock options sold while the company traded at inflated prices. On August 9, 2011, Motricity announced quarterly results that showed the company was performing well below expectations. On this news, shares of Motricity collapsed 50% to open on August 10, 2011, at just $2.26 per share.

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/motricity-inc/ ]

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