NEW YORK, March 8, 2013 (GLOBE NEWSWIRE) -- Scott+Scott, Attorneys at Law, LLP filed a class action complaint in the United States District Court for the Northern District of California on behalf of those persons and entities: (1) who purchased or otherwise acquired Epocrates, Inc. ("Epocrates" or the "Company") (Nasdaq:EPOC) securities between February 2, 2011 and August 9, 2011, inclusive (the "Class Period"); and (2) who purchased or otherwise acquired Epocrates securities pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's February 2, 2011 initial public offering (the "IPO" or the "Offering"). The action seeks remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934.
If you purchased Epocrates securities during the Class Period or in the Company's IPO and wish to serve as a lead plaintiff in the action, you must move the Court no later than May 7, 2013. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537) or visit the Scott+Scott website for more information: http://www.scott-scott.com/
There is no cost or fee to you.
Based in San Mateo, California, Epocrates offers various mobile health software applications that provide reference information for the healthcare industry. The securities class action charges that, throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations and prospects. Specifically, the defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company's pharmaceutical clients were awaiting guidance relating to use of advertising on the Internet and through social media from the United States Food and Drug Administration ("FDA"); (2) that, as a result, these clients were increasingly delaying their marketing activities on the Internet and through social media; (3) the FDA's delay in issuing guidance relating to the Internet and social media was causing expanding regulatory queues for Epocrates; (4) that the expanding regulatory queues were negatively impacting the Company's sales and revenue growth; and (5) that, as a result of the foregoing, the defendants' positive statements about the Company's business, operations and prospects lacked a reasonable basis and/or were materially false and misleading at all relevant times.
On August 9, 2011, the Company reported its 2011 fiscal second quarter financial results and lowered its net sales guidance for the 2011 fiscal year from the range of $122 million to $125 million to the range of $115 million to $120 million. According to the Company, the reason for this revised guidance was that its revenue growth was being negatively impacted by expanding regulatory queues, causing delays in the launch of DocAlert® messages and the lengthening of the time between contract signing and revenue recognition.
On this news, shares of Epocrates declined $6.80 per share, nearly 40%, to close on August 10, 2011, at $9.89 per share, on heavy trading volume.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide.