An investigation on behalf of current long term investors in Angie’s List Inc (NASDAQ:ANGI) shares over possible breaches of fiduciary duty by certain officers and directors was announced and NASDAQ:ANGI stockholders should contact the Shareholders Foundation at email@example.com
San Diego, CA -- (SBWIRE) -- 10/29/2014 -- An investigation on behalf of current long-term investors in shares of Angie’s List Inc (NASDAQ:ANGI) concerning potential breaches of fiduciary duties by certain directors and officers of Angie’s List was announced.
Investors who are current long term investors in Angie’s List Inc (NASDAQ:ANGI shares, have certain options and should contact the Shareholders Foundation, Inc. at firstname.lastname@example.org or call +1(858) 779 - 1554.
The investigation by a law firm for current long term investors in NASDAQ:ANGI stocks follows a lawsuit filed earlier this year against Angie’s List Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:ANGI stocks, concerns whether certain Angie’s List officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for Southern District of Indiana the plaintiff alleges that Angie's List Inc. violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the plaintiff alleges that defendants between February 14, 2013 and October 23, 2013, issued allegedly materially false and misleading statements regarding the strength of the Company's business model and its financial performance and future prospects and failed to disclose,
- that Angie's List had increased its reliance on providing free memberships in order to artificially boost its subscriber figures,
- that contrary to Angie's List's repeated between February 14, 2013 and October 23, 2013 statements that the online reviews were unbiased because Angie's List did not permit service providers to buy ratings on its website ("You can't pay to be on Angie's List"), the Company was consistently deriving more than half of its revenues from the service provider side of its business - where it relied heavily on collecting fees for listing paid service providers more prominently,
- that because Angie's List sometimes charged service providers hundreds of dollars for "hot leads," those costs were being passed along to Angie's List subscribers, increasing the prices consumers were paying and decreasing the benefit to them of using the website, that the legitimacy of the service provider side of Angie's List's business model was called into question by Angie's List's practice of forcing service providers to pay high fees to be listed as highly rated service providers, knowing that if they did not, they would not get customer referrals from Angie's List,
- that because Angie's List did not vet the service providers listed and recommended on its website, either for qualifications or for safety, many consumers were questioning the value of its recommendations, making them unwilling to continue paying outsized membership fees,
- that as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the strength of Angie's List's business model and its business and financial prospects between February 14, 2013 and October 23, 2013.
On September 30, 2013, Angie's List Inc disclosed in a filing with the SEC that its Chief Technology Officer Manu Thapar’s employment with the Company has ended effective September 27, 2013. Then on October 23, 2013, Angie's List Inc reported its third quarter 2013 results.
Shares of Angie's List Inc declined from $28 per share in July 2013 to as low as $6.37 per share on September 30, 2014.
On October 27, 2014, NASDAQ:ANGI shares closed at $6.65 per share.
Those who purchased shares of Angie's List Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego