A lawsuit was filed on behalf of investors in Rocket Fuel Inc (NASDAQ:FUEL) shares over alleged securities laws violations. Deadline: November 3, 2014. NASDAQ:FUEL investors should contact the Shareholders Foundation at firstname.lastname@example.org
San Diego, CA -- (SBWIRE) -- 09/08/2014 -- An investor, who purchased shares of Rocket Fuel Inc (NASDAQ:FUEL), filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by Rocket Fuel Inc in connection with certain allegedly false and misleading statements made between September 20, 2013 and August 5, 2014.
Investors who purchased shares of Rocket Fuel Inc (NASDAQ:FUEL) have certain options and for certain investors are short and strict deadlines running. Deadline: November 3, 2014. NASDAQ:FUEL investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of purchasers of Rocket Fuel Inc (NASDAQ:FUEL) common shares between September 20, 2013 and August 5, 2014, that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934.
More specifically, the plaintiff alleges that Rocket Fuel allegedly failed to inform investors that defendants' alleged misrepresentations between September 20, 2013 and August 5, 2014concerning the Company's then financial and business condition, including its forecasted financial and business condition as alleged herein, were each allegedly materially false and misleading when made because defendants knew, or were reckless in not knowing, that a large percentage of the ads Rocket Fuel Inc brokered were being "viewed" by automated fraudulent computer programs, rather than real people, such that the Company's operations and financial performance were in jeopardy, that between September 20, 2013 and August 5, 2014, Rocket Fuel's revenue growth was negatively impacted due to its inability to identify and eliminate bot traffic for its customers, that no later than the beginning of February 2014, the Company knew that it would miss Wall Street consensus estimates for the quarter due to, among other things, customer concern about inventory quality, and that the Secondary Offering was designed to enable Company insiders to unload their shares at artificially inflated prices.
On May 8, 2014, Rocket Fuel Inc announced its fourth quarter and fiscal year 2013 financial results. Rocket Fuel Inc reported that its annual Total Revenue rose from $106.59 million in 2012 to $240.60 million in 2013 while its respective Net Loss increased from $10.34 million to $20.93 million.
Among other things, Rocket Fuel Inc also issued its business outlook for its fiscal year 2014. Rocket Fuel Inc said that it expects revenue in the range of $420.0 million to $435.0 million. Shares of Rocket Fuel Inc (NASDAQ:FUEL) grew from $21.14 per share on May 12, 2014, to $31.09 per share on June 30, 2014.
Then on August 5, 2014, Rocket Fuel Inc announced its second quarter 2014 financial results. Among other things, Rocket Fuel Inc lowered its full year guidance. Rocket Fuel Inc announced that it expected 2014 revenue of $403 million to $427 million, down from its forecast of $420 million to $435 million. Shares of Rocket Fuel Inc (NASDAQ:FUEL) declined from $26.84 per share on August 5, 2014, to $16.50 per share on August 8, 2014 and continued to decline to as low as $14.29 per share on August 22, 2014.
On September 4, 2014, NASDAQ:FUEL shares closed at $15.35 per share.
Those who purchased shares of Rocket Fuel Inc (NASDAQ:FUEL) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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