Motricity Shareholder Lawsuit
Motricity, a provider of content for mobile phones (NASDAQ: MOTR) is being sued for allegedly misleading investors in its public disclosures during and after its IPO.
Companies issuing stock have a legal duty to report accurate information to shareholders. The lawsuit is premised on whether Motricity management deliberately chose to mislead investors by failing to disclose market conditions that would lead to losses, namely that the exploding popularity of smart phones would be bad for Motricity's business. Thus the company's IPO statements defrauded investors.
Indeed when Motricity went public on June 18, 2010, it offered 6,000,000 shares at $10 per share. MOTR stock is now trading (8/11) at around $2.50.
May 3, 2011: When Motricity releases first quarter 2011 financial results, it reported $6.1 million in losses: MOTR falls 14 percent, closing at $10.99 per share on May 4, 2011.
August 9, 2011, second quarter 2011 financial results, report a net loss of $4.3 million. MOTR stock opened at $2.26 per share! a decline of 50 percent.
If you are a shareholder of Motricity please call Attorney Bill Kyros at 1-800-934-2921 to discuss your rights.
Kyros Law is a Boston-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For info about our law firm please our Kyros Law web site.
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