NEW YORK, Jan. 27, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the securities of ChannelAdvisor Corporation ("ChannelAdvisor" or the "Company") (NYSE:ECOM) between November 6, 2014 and January 12, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the "Complaint").
The Complaint alleges that Defendants concealed from the investing public that: (1) ChannelAdvisors' shift in customer base away from smaller clients to larger clients posed a risk to the Company's financial performance as it impacts the revenue generated from its variable subscriptions; and (2) larger clients were given a discount in the percentage of gross merchandise value ("GMV") that goes to ChannelAdvisor for variable subscription, which results in lower revenue for the Company.
On January 12, 2015, the Company issued a press release which lowered its revenue guidance for the fourth quarter of 2014. The Company's CEO, Scot Wingo, commented: "We saw an unusual shift of gross merchandise volume (GMV) to larger customers this holiday season at the expense of smaller customers . . . . Because larger customers enjoy volume discounts in the form of lower take rates, this shift translated to lower variable subscription revenue, even though overall GMV increased 31% year over year for the fourth quarter. This resulted in fixed subscription revenue for the fourth quarter growing approximately 27% while variable subscription revenue decreased approximately 5% compared to a year ago."
On this news, shares in ChannelAdvisor plummeted over 53%, closing at $9.83 per share on January 13, 2015, on extraordinarily high trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than March 24, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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