A lawsuit was filed on behalf of investors in Bankrate Inc (NYSE:RATE) shares over alleged securities laws violations. Deadline: December 9, 2013. NYSE:RATE investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 10/21/2013 -- An investor, who purchased shares of Bankrate Inc (NYSE:RATE), filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Bankrate Inc in connection with certain allegedly false and misleading statements made between June 16, 2011 and October 15, 2012.
Investors purchased shares of Bankrate Inc (NYSE:RATE) in or traceable to the Company's June 16, 2011 initial public offering, in a December 6, 2011 secondary offering, or on the open market during the period from June 16, 2011 through October 15, 2012 inclusive, have certain options and there are short and strict deadlines running. Deadline: December 9, 2013. NYSE:RATE investors should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise otherwise acquired Bankrate Inc (NYSE:RATE) securities in or traceable to the Company's June 16, 2011 initial public offering, in a December 6, 2011 secondary offering, or on the open market during the period from June 16, 2011 through October 15, 2012 inclusive, that Bankrate Inc and certain senior executives and Directors, Apax Partners, and underwriters of the Company's securities violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
More specifically, the plaintiff claims that the defendants issued between June 16, 2011 through October 15, 2012 allegedly false and misleading press releases, financial statements, filings with the Securities and Exchange Commission, made false and misleading statements and omissions during investor conference calls, and sold the Company's shares in the IPO and secondary offering by means of allegedly false and misleading prospectuses.
The plaintiff says that the defendants misled investors regarding the quality of Bankrate's insurance leads and as a result of Defendants' allegedly false statements and omissions, Bankrate Inc's securities traded at artificially inflated prices between June 16, 2011 through October 15, 2012.
Indeed shares of Bankrate Inc (NYSE:RATE) grew from as low as $14.85 per share in August 2011 to as high as $24.75 per share in March 2012.
Then on October 15, 2012, after the market closed, Bankrate Inc announced its preliminary Third Quarter Fiscal 2012 Results. Among other things, Bankrate Inc said its Total revenue for the third quarter is expected to be between $115.5 million and $117.5 million. Furthermore Bankrate Inc said it that adjusted earnings before interest, taxes, depreciation, and amortization, excluding share-based compensation expense and IPO and deal related expenses, are expected to be between $28.5 and $30 million in the third quarter of 2012, compared to $36.0 million in the third quarter of 2011, or a decline of 19% at the midpoint of the range.
Shares of Bankrate Inc (NYSE:RATE) fell from $14.50 per share on October 15, 2012 to $10.40 per share on October 16, 2012 and continued to decline to as low as $10.17 on November 8, 2012.
Those who purchased shares of Bankrate Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego