NEW YORK--(BUSINESS WIRE)--
The law firm of Wohl & Fruchter LLP has filed a class action lawsuit
against Angie's List, Inc. (Angie’s List) (NASDAQ:ANGI) and certain of
its officers. The class action, filed in the United States District
Court, Southern District of Indiana, is on behalf of a class consisting
of all persons or entities who purchased or otherwise acquired ANGI
securities between February 14, 2013 and October 23, 2013, both dates
inclusive (the “Class Period”). This class action seeks to recover
damages against Defendants for alleged violations of the federal
securities laws pursuant to Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased ANGI securities during the Class
Period, you have until February 24, 2014 to ask the Court to appoint you
as Lead Plaintiff for the class. A copy of the Complaint can be obtained
To discuss this action, and learn more about applying for Lead
Plaintiff, please contact us at 866.833.6245, or the attorney in charge
of the case, J. Elazar Fruchter, at 845.425.4658, or firstname.lastname@example.org.
The Complaint alleges that throughout the Class Period, Defendants made
materially false and misleading statements, and failed to disclose
material facts, regarding Angie’s List’s business model, and operational
policies, and that as a result of the foregoing, lacked a reasonable
basis for their positive statements about the strength and viability of
Angie's List's business model during the Class Period. In particular,
Defendants had stressed that Angie’s List’s membership fees represented
a significant source of working capital and provided a relatively
predictable revenue stream.
The Complaint further alleges that between September 30, 2013 and
October 24, 2013, Defendants disclosed, among other things, that: (i)
Angie's List's Chief Technology Officer had been terminated – without
explanation or naming a replacement; (ii) Angie's List had slashed
membership prices by roughly 75% in several key markets, in a bid to
attract new members; and (iii) Angie’s List third quarter 2013 financial
results were much weaker than Defendants had led the market to expect,
and declining business metrics and flaws in its business model were
forcing Angie's List to issue weaker fourth quarter 2013 financial
guidance. On this and other negative disclosures, the price of Angie's
List common stock declined from $20.99 on October 2, 2013 to close at
$14.64 on October 24, 2013, a decline of over 30%.
About Wohl & Fruchter
Wohl & Fruchter LLP represents plaintiffs in litigation arising from
securities fraud and fiduciary breaches by corporate managers, as well
as other complex litigation matters. Please visit our website, www.wohlfruchter.com,
to learn more about our Firm, or contact one of our partners.
This release may be deemed to constitute attorney advertising.
Wohl & Fruchter LLP
J. Elazar Fruchter
Toll Free 866-833-6245
Source: Wohl & Fruchter LLP