NEW ORLEANS, Aug. 10, 2011 (GLOBE NEWSWIRE) -- Kahn Swick & Foti, LLC ("KSF") and KSF partner, Former Attorney General of Louisiana, Charles C. Foti, Jr., announce the commencement of the firm's securities class action lawsuit against Travelzoo Inc. ("Travelzoo" or the "Company") (Nasdaq:TZOO). The lawsuit was filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Travelzoo between April 21, 2011 and July 21, 2011, inclusive (the "Class Period").
What You May Do
If you are a Travelzoo shareholder and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free, 877-515-1850, or via cell phone any time at 504-301-7900. If you wish to serve as a lead plaintiff in this class action by overseeing lead counsel with the goal of obtaining a fair and just resolution, you must request this position by application to the Court by October 11, 2011. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. KSF also encourages anyone with information regarding Travelzoo's conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
About the Lawsuit
Travelzoo and certain of its officers and directors are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934.
The complaint alleges that on July 21, 2011, defendants first revealed to investors that the Company was performing well below expectations, with costs and expenses well above plan and with revenues well below. Travelzoo announced earnings per share of $.30, well below analysts' expectations of $.39 per share. Shares of the Company immediately collapsed, falling approximately $30.00 per share, or 30 percent, to below $60.00 per share on heavy trading volume. According to Wedbush Securities analyst Edward Woo, from a Reuters story dated July 21st, "Travelzoo's core European newsletter business didn't grow as fast as expected, and incremental costs were higher than estimated."
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. To learn more about KSF, you may visit www.ksfcounsel.com/" target="_blank">www.ksfcounsel.com.