MINNEAPOLIS, Sept. 2, 2011 (GLOBE NEWSWIRE) -- Charles H. Johnson & Associates announces that a class action has been commenced in the United States District Court for the Western District of Washington on behalf of those who acquired Motricity, Inc. ("Motricity" or the "Company") (Nasdaq:MOTR) publicly traded securities during the period June 18, 2010 through August 9, 2011 (the "Class Period"), and/or acquired shares of Motricity common stock pursuant or traceable to the Company's June 17, 2010 initial public offering ("IPO").
If you are a member of the proposed Class, you may move the Court to serve as a lead plaintiff for the Class on or before October 11, 2011. You do not need to be a lead plaintiff in order to share in any recovery that may be obtained.
The Complaint alleges that the Company and certain of its officers failed to disclose negative trends in the Company's business, and represented that business would continue to prosper despite the increasing popularity of smart phones, which provide Internet access without the Company's services.
The Complaint further alleges that as a result of Defendants' false statements, Motricity stock traded as high as $30.74 per share on November 9, 2010. On May 3, 2011, the Company announced first quarter 2011 financial results, reporting a net loss of $6.1 million and revenue of $32.2 million. On this news, the stock dropped $1.82 per share to close at $10.99 per share on May 4, 2011. On August 9, 2011, the Company issued its second quarter 2011 financial results, reporting a net loss of $4.3 million and revenue of $34.6 million. On this news, the stock fell 50%.
If you purchased or acquired Motricity, Inc. stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neal Eisenbraun, Esq. (cjohnsonlaw@gmail.com)
Charles H. Johnson & Associates
2599 Mississippi Street
New Brighton, MN 55112
(651) 633-5685