NEW YORK, March 13, 2015 (GLOBE NEWSWIRE) -- Morgan & Morgan 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 common stock of CTPartners Executive Search Inc. ("CTPartners" or the "Company") (NYSE:CTP) between February 26, 2014 and January 28, 2015, inclusive (the "Class Period"), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers.
If you purchased CTPartners stock during the Class Period, you may, no later than April 28, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported 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.
If you want more information about the CTPartners Class Action, contact Morgan & Morgan at 1(800) 732-5200 or email info@morgansecuritieslaw.com
CTPartners provides retained executive search services worldwide.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and omitted materially adverse facts about the Company's business, operations and prospects. Specifically, the Complaint alleges that during the Class Period, defendants repeatedly highlighted the Company's reputation within the industries in which it operated based on the "integrity" of its employees and on the strength and qualifications of its search consultants. Further, the Company represented that these consultants were promoted based on "objective" and "transparent" criteria related to their merits, and that this purported meritocracy had been and would be a key to the Company's ongoing success. Defendants, however, failed to disclose that CTPartners allegedly operated as a "den of discrimination" that subjected employees to crude, improper and discriminatory practices, which threatened the Company's ability to raise capital, retain employees or successfully execute its core business functions.
On January 28, 2015, the Company withdrew its preliminary fourth quarter and year-end guidance provided only one week earlier and revised downward its earnings guidance for the first quarter and full fiscal year 2015. The Company disclosed that it expected to post a fourth quarter adjusted EPS loss of $0.07 to $0.09 per share, down from the prior announced adjusted EPS gain of $0.06 to $0.08 per share. The Company stated that the downward revision was due to a $1.7 million-increase in "compensation expense" for employee bonuses. In addition, CTPartners withdrew a proposed stock offering, this one announced only two days prior.
Following this news, the price of CTPartners stock dropped $2.17, more than 33% per share to close at $4.35 per share on January 29, 2015.
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