NEW YORK, Oct. 3, 2011 (GLOBE NEWSWIRE) -- A class action lawsuit has been filed in the United States District Court for the Western District of Washington on behalf of those who purchased securities of Motricity, Inc. ("Motricity" or the "Company") (Nasdaq:MOTR) between June 18, 2010, and August 9, 2011 (the "Class Period").
The lawsuit alleges that Motricity and certain of its officers and directors violated the Securities Act of 1933 and the Securities Exchange Act of 1934 in connection with Motricity's IPO and events thereafter. On June 18, 2010, Motricity announced the pricing of its 6 million share IPO at $10 per share.
It is alleged that defendants failed to disclose negative trends in Motricity's business, and misrepresented or failed to disclose the negative impact of the growing smartphone market on the Company's business, causing Motricity stock to trade at artificially inflated prices during the Class Period.
On May 3, 2011, Motricity issued a press release announcing its first quarter 2011 financial results. The Company reported a net loss of ($6.1) million, and revenue of $32.2 million. On this news, Motricity's stock dropped $1.82 per share, closing at $10.99 on May 4, 2011. On August 9, 2011, Motricity issued its second quarter 2011 financial results, reporting a net loss of ($4.3) million, and revenue of $34.6 million, well short of expectations. On this news, Motricity's stock plummeted, opening at $2.26 per share on August 10, 2011, a decline of 50%.
If you purchased Motricity securities during the Class Period you may, no later than October 11, 2011, request that the court appoint you lead plaintiff of the proposed class. A lead plaintiff is a class member that represents other class members in directing the litigation. Your share in any recovery will not be affected by serving as a lead plaintiff, however, lead plaintiffs make important decisions that could affect the overall recovery for class members. You do not need to be a lead plaintiff to recover. You may retain Milberg LLP, or other attorneys, for this action, but do not need to retain counsel to recover. If this action is certified as a class action, class members will be automatically represented by court-appointed counsel. The complaint in this action was not filed by Milberg.
Milberg LLP has represented individual and institutional investors for over four decades and serves as lead counsel in courts throughout the United States. Visit the Milberg website (www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, please contact the following attorneys:
Jeff Westerman, Esq.
One California Plaza
300 South Grand Avenue, Suite 3900
Los Angeles, CA 90071
Andrei V. Rado, Esq.
One Pennsylvania Plaza
49th Floor
New York, NY 10119
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